Have you heard about the 8% annuity secret?
To get your free e-book “How To Avoid Annuity Traps” click here: http://retirementplanningmadeeasy.com/annuity-traps
When you are considering investing in annuities, you will probably come across an advertisement that seems to guarantee 8% returns on your annuity.
The advertisement may even call it an 8% annuity secret.
What’s really going on here?
Well, if it sounds too good to be true it probably is. And in this case, I promise you it is too good to be true.
The 8% applies to the growth of your income account value. If you have an income rider on your fixed index annuity, it will have an income account value.
This value is used to determine how much lifetime income you can get off the annuity.
The 8% growth rate applies to this income account value. It is not your “walk away money.”
You can’t cash out your income account value and put the money in the bank.
It is only used to calculate how much income the insurance company will be contractually obligated to pay you under the income rider.
Advertising as though you will get 8% on your money is a very “hypey” thing to do.
And what’s crazy is this: These income riders (like the 8% growth income rider) can be used fantastically to plan for your retirement income.
They can give you great predictability as to how much money you will contractually be guaranteed at a certain point in the future.
Also, the income rider gives you the flexibility to still have access to your account values. You can surrender the annuity if you no longer want the guaranteed income stream, and take your money elsewhere.
This predictability and flexibility make it a great tool to use, when used properly in a retirement plan.
So there is no need for hype.
When you invest in annuities, don’t buy in to all the hype. You’re not going to get a guaranteed 8% return on your account value.
To read the full article on this click here: http://retirementplanningmadeeasy.com/investing-in-annuities-8-percent-annuity-secret/
To download your free e-book “How To Avoid Annuity Traps” click here: http://retirementplanningmadeeasy.com/annuity-traps
Best of luck!