Annuity Basics

Did you know you can get free annuity advice without having to talk to a high-pressure sales agent?

• Unlike some firms, ours is not a “car lot” with salespeople hovering and waiting for sales “leads.”
• When you are comparing annuity agencies in Scottsdale or retirement planning firms in Arizona, be careful. While some companies show a picture with five or six “advisors”, these can be salespeople who may not be with that firm in six months or a year. Our firm is focused on quality, longevity, and commitment to our clients.
• At IQ Wealth®, we build complete financial plans for life and help you with expert 401k rollover advice to keep your money secure. You will not be passed off to an assistant.
• We charge our clients no advisor fee, while comparing the results of over 1200 annuities
• We reject over 98% of all annuities for our clients. Our system reveals the best annuities ranked by income, growth rate, company ratings, and lowest fees. (Several of our selections have no annual fees for their income riders and may offer inflation protection)
• Learn how you can enjoy secure annuity income equal to 9.77%, with no annuitizing, depending on age and deferral period.
• KEY ADVANTAGE: You maintain control of your principal without disinheriting your heirs
• You can retire and STAY retired, without risking all of your money in the stock market or investing in risky bond funds. Relax.
• Learn why Ken Fisher and Dave Ramsey are completely wrong about annuities (mostly they are biased and under informed)
• Scottsdale Financial Planner Steve Jurich (pronounced Jur-itch) is one of America’s leading annuity authorities who helps his clients make informed annuity decisions with transparency and with his clients’ best interests in mind. Steve understands the industry like few other planners. His clients will tell you the same thing: Steve takes annuities apart and puts them back together for you– so they become crystal clear.

IMPORTANT ANNUITY INFORMATION:

There are four main classifications of annuities in today’s marketplace: Immediate, variable, fixed, and fixed index. If you are ever going to understand annuities, you need to know what classification of annuity the author is talking about. When a critic says annuities have “high fees”, he can ONLY be talking about VARIABLE annuities, which I don’t recommend. Variable annuities are the only type of annuities with ongoing fee deductions of 2% to 4%.

What is an Annuity?

An annuity is an agreement with a licensed, regulated, and audited life insurance company. It is part investment, part insurance.

The job of an annuity is to guard your capital, pay you interest, and—if you prefer– pay you an income for life, like a pension. No other asset in the world can do that.

Today’s annuities are issued by top grade insurance companies with decades of trouble-free track records. Our firm is very picky–we require companies of larger size, with high ratings, licensed and audited by all 50 states.

WHAT ARE THE 4 KINDS OF ANNUITIES?

There are four broad categories of annuities

• Immediate
• Variable
• Fixed
• Fixed Index (also known by nicknames—hybrid, new generation, next gen, and Next Generation)

TIPS:

• If you want to stay in control of your principal (most people do), avoid immediate annuities.
• If you want to avoid fee deductions, avoid variable annuities.
• If you want to benefit from the upside of market increases, without any market losses when the market falls, explore fixed index annuities
• If you don’t want the insurance company to “keep your money when you die”, avoid immediate annuities and deferred income annuities (DIA’s)
• Immediate annuities are the least popular form of annuity, use sparingly.

What Should I Know About Comparing Annuities Before Making My Decision?

You should always consider the source of the information you are getting about annuities. Choose the right professional for the job. Many family practice doctors are smart and educated. Yet, if you want a specific surgery, you go to the right surgeon.

Your stockbroker or a financial advisor in most cases will not be qualified to advise on the entire spectrum annuity offerings. Annuities are intended to fortify retirement portfolios for the age group of 45- 75.

An annuity strategy can be the core and the foundation of a sustainable retirement strategy. It never relies on the stock market going up, and still pays you income when the market goes down.

The right annuity can perform the function that bond funds are no longer equipped to perform.

What Annuity is Best for an IRA Rollover?

While any of the four kinds of annuities can be used for your IRA rollover, “Next Generation” fixed index annuities with income riders offer more control to the investor within their financial plan for retirement. You maintain ownership of your principal, while still having the benefit of receiving lifetime income. The feature that allows this benefit is known as a GLWB—Guaranteed Lifetime Withdrawal Benefit. It is an insurance feature to guard and pay your income for life, while maintaining control of your principal. Your heirs get every penny you don’t spend.

What is an Annuity “Income Rider”?”

An annuity income rider is an optional insurance guarantee of lifetime income, which can be attached to your fixed index or variable annuity, typically for a fee which helps to guarantee your income.

Annuity income riders address the number one fear of most retired investors: running out of money and running out of income. By guaranteeing income for life (even if your principal were to decline to zero), the income rider adds a benefit you will never find with a mutual fund or bank account.

Our clients enjoy expert education in annuities without sales hype or sales pressure.

We are independent and committed to fiduciary duty. Our system compares 1200+ Annuities.

Annuities can perform a valuable function in a retirement portfolio due to the low interest rates and market volatility that is part of the current long-term trend. All guarantees rely on the claims-paying ability of the insurer. Knowing what is guaranteed, and what isn’t, is very important. The IQ system reviews and compares the top payouts in America today, sorting through hundreds of annuities and zeroing in the top 10 to 25 in your category. This process can save thousands in fees and can result in thousands of dollars of extra income annually. Together, we can select the correct annuity for you and make it part of a balanced portfolio.

Important Disclosures

This overview is very general in nature, is not a prospectus, and is not complete. It is a beginning, not an end. No recommendations are being made herein. Only with a personal review of your risk tolerance and time horizon can a recommendation be made. Our hope is to stimulate you to do further research and to ask better questions. Always review the annuity disclosures and/or prospectus carefully. Thank you.

Annuities are not bank deposits and are not FDIC insured. *Annuities are contracts between you and an insurance company. Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer.

This article is meant to provide general information on issues that many people consider in making the decision as to whether or not they should buy annuities; and if they do decide to buy, which types of annuities and which annuity benefits and additional riders will best suit their goals and needs. This information is not designed to be a recommendation to buy any specific financial product or service. Thank you.

¹NOTE:

Investments and annuities are on opposite ends of the financial spectrum. Investments are for pure accumulation and typically offer no guarantees. Annuities offer guarantees, depending on your goals. Putting together both investments and annuities into a well thought out retirement portfolio is a wise beginning to building a financial plan to last through the ups and downs of the economy and markets.

Therefore, we maintain two divisions: securities and insurance. Fee-based investment advisory services are provided by IQ Wealth Advisory, LLC, a Registered Investment Adviser. Insurance and annuities are provided by IQ Retirement Planning, Inc.

Annuities are insurance-based financial vehicles designed not for growth but for income preservation and sustainability. Annuities are not FDIC insured and may have surrender charges for a period of time. Generally, a partial withdrawal of 5 to 10 percent is allowed annually, penalty free. The annuities we recommend waive all surrender charges upon death. All guarantees rely on the financial strength and claims paying ability of the issuing insurer. At IQ Wealth, our policy is to require at least 100 years of successful track records and strong ratings for any insurance company we recommend.

Income riders are a means to enhance the income benefits provided by the underlying annuity contract. A discussion regarding whether an annuity would meet your needs and objectives should take place before deciding if an income rider is appropriate.

External link policy:

External links, which direct our website visitors to sites outside the Arizona Department of Insurance’s review, are provided throughout our website for your convenience.

The appearance of a hyperlink on our website does not constitute endorsement by IQ Wealth Management, IQ Wealth Advisory or Steve Jurich. These links are provided for convenience only. We do not exercise any editorial control over the information you may find through external links and bear no responsibility for the accuracy or content of web pages accessed through external links. Any concerns or comments related to the contents of the sites accessed through external links should be directed to the author of that website. Use of any information obtained from such external links is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy and timeliness.