Page 180 - Ready Set Retire

Stephen J. Kelley

own an imperfect investment…and one where you could lose
your shirt (impossible with an FIA!).

4. “MY BROKER SAYS FIAS AREN’T APPROPRIATE FOR
QUALIFIED FUNDS SUCH AS IRAS AND 401(K)S.”

Since when is tax treatment the only consideration given about
whether anyone should buy a product or make an investment?
It’s true that from a tax standpoint it’s a wash; but what about
safety, opportunity and liquidity? All of these should be
considered as well. When looking at the complete picture most
people agree that it makes sense to have some money in an
FIA. This product is not likely to duplicate any other
investment you have. We are all taught to diversify, and an FIA
is a great way to do it. Think about safely linking to the
horsepower of 500 stocks represented in the S&P 500 as
compared to owning two stocks directly. This is much greater
diversification.

3. “CAN I TRUST AN INSURANCE COMPANY WITH MY
MONEY?”

I find it interesting that people trust insurance companies with
insuring their homes, cars, health and life, but not their nest
eggs and future income. If we can feel okay about trusting
them with these, then we ought to be okay with having them
insure our nest eggs and income.

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