The concept of investing is often associated only with money and the pursuit of wealth, but this Annuities are a popular thing these days… why is that the case?
And are they a valid option for those planning their retirement?
In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja explores the world of annuities – from what they are and the three types of annuities all the way to four common myths, Brian’s “unpopular opinion” and why annuities and investments aren’t in competition.
Plus, Brian reveals what he considers the best way to accumulate wealth.
- You need to keep in mind that there are plenty of unknown factors in your life, such as how long you’re going to live, inflation, how the market is performing, healthcare costs, and economic shifts.
- Brian believes that the uncertainty surrounding retirement is why annuities are so popular.
- Annuities are a way to transfer risk over to an insurance company and provide some sense of safety for the future, says Brian.
- According to Statista, the risk of running out of money is a real concern for many retirees, with an estimated $2.53 trillion of retirement assets held inside of annuities.
- Brian breaks down the three types of annuities – variable, fixed-indexed, and fixed-rate – and shares a common misconception about income benefits.
- In his own words, Brian has an “unpopular” stance: he’s a believer in the fact that whether or not someone should use an annuity depends on their situation.
- Brian touches upon when it makes sense for you to use an annuity and when it doesn’t.
- “Capital appreciation over time” is what Brian considers the best way to accumulate wealth.
- Brian explains that annuities and investments aren’t in competition, because they both have a place at different times in someone’s life, depending on their needs.
- Brian goes over four common annuity-related myths.
Mentioned in this episode:
Common Sense Financial Podcast on YouTube
Common Sense Financial Podcast on Spotify
Brian’s article: My 5-Minute Retirement Plan
Brian’s article: The Financial Fiduciary Standard Explained
Brian’s article: What to Do With Cash in a Low Interest Rate Environment
Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.
“The podcasts posted here before July 1, 2022 are historical in nature and were previously approved by Kalos Management, LLC. The views and statistics discussed in these shows are relevant to that time period and may not be relevant to current events. This is intended for informational and entertainment purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. Our firm is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.”
