Page 157 - Ready Set Retire

Ready. Set. Retire!

Anyway, back to the point. The old fashioned annuity that
provided lifetime payouts and benefits through annuitization
no longer fit the model. We now needed a newer model that
allowed people to keep control of their money and get a
meaningful lifetime payout. So the industry came up with a
whole new line of policies that met both needs: the need to
keep control of one’s money, and the need for excellent and
safe returns and guaranteed lifetime income streams that could
only be provided by an insured retirement plan.

Enter the modern Fixed Index Annuity. We call it the “have
your cake and eat it, too” annuity, or the hybrid annuity. Try
this on for size:

It’s safe. You cannot lose a dime of your principal or any
accrued interest unless you pull your money out before the
surrender period is over.

Okay, now wait a minute. Weren’t surrender periods and
charges one main reason you objected to variable annuities a
little earlier? Yes, they were. And here’s why...they didn’t buy
you anything (except the privilege of paying exorbitant and
immoral fees)! Hold on and I will explain. Meanwhile, back to
the advantages of the FIA:

• They allow you to receive market-based gains without
market risk (see the section on eliminating market risk).

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