• Home
  • E-Booklets
  • Pay Less Tax
  • Privacy Policy
  • Cheatsheets
  • Contact Us
  • About us

Retirement Income

New Ways to Get More Retirement Income

  • Retirement Advisors
  • Retirement Insurance
  • Retirement Investing
  • Retirement Living
  • Retirement Planning

Annuity Rates - Dont Sacrifice for Safety

Posted on September 8, 2011 by bobrichards

Finding high annuity rates is the most important issue for most investors in when shopping for a fixed or immediate annuity. For others, safety of the principal is paramount. Therefore, the actual ratings that are given to a particular annuity company is an important factor in determining which annuity company to select. Just like many economic opportunities, the better the safety rating, the lower your rate will be on the contract, and vice-versa. But there is not always an exact correlation between an individuals company's safety rating and annuity rates offered.  It's useful to look at other variables.

In an effort to protect investors money deposited with insurance companies, individual states have established state guaranty laws. Although the legal guidelines differ by state, these kind of laws typically dictate that will annuity deposits are covered for up to $100,000 per annuitant. Note that these laws protecting annuity holders investments should not be thought of as guarantees as they are always subject to funds being available.  Therefore, it would not be wise to go with a company offering the highest annuity rates because you believe your investment is guaranteed; it is not. Rather, the state guarantee laws exist for the scenario of one insurance company having an inability to meet its obligations and being able to provide for its customers. The guarantee laws are not designed to project the investors if multiple companies fail simultaneously during a bad economy.

Curiously, you may not have heard about guaranty laws from your insurance agent or broker as they are not permitted to mention the guarantee laws as an inducement to have you purchase an annuity or life insurance contract.  However, in the event you ask your agent regarding it, he or she has a fiduciary duty to spell out it to you.

As to evaluations of insurance companies, five independent organizations - A.M. BEST, Fitch, Moody's, Standard & Poor's, and Weiss - rate the fiscal strength of annuity companies. Each has its rating scale, its own standards, its own parameters regarding rating companies. Generally, you want to select insurance companies  that have ratings within the top three categories of all of the rating organizations.  we recommend you select your annuity company first by its safety rating and then by its annuity rates.

Whether you are seeking increased annuity rates from or greater basic safety in your annuity rates investments, you may be capable of getting both with some research.

Most Annuity Owners Make This Mistake

To get wealthy, invest like the wealthy
  • Why the wealthy steer clear of mutual funds
  • How the rich systematically make money in the market
  • Key metrics that differentiate good and bad investments
  • A comparison of ETFs and separately managed accounts you have never seen
  • Stop making the same investing mistakes as everyone else who listens to CNBC and reads Money Magazine. Do what the rich do! Free guide explains how they think and make investment choices.

    You might also like:

    • Retirement Solutions— Difficult Trends and What You Can DoRetirement Solutions— Difficult Trends and What You Can Do
    • How Retirees Can Use Tax Reform to Their Advantage (and other senior tax breaks from 2017)How Retirees Can Use Tax Reform to Their Advantage…
    • Estate Financial Planning Has Nothing to Do With Your WealthEstate Financial Planning Has Nothing to Do With Your Wealth
    • Average Retirement Savings by Age – How Do You Compare?Average Retirement Savings by Age – How Do You Compare?
    • Use Life Insurance in Estate Planning to Treat Beneficiaries EquallyUse Life Insurance in Estate Planning to Treat…
    • Social Security Office Cheating RetireesSocial Security Office Cheating Retirees

    Filed Under: Annuities for Income

    About bobrichards

    Bob Richards
    Editor | Involved in Various Marketing Positions within the Financial Services Industry

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Second place winner best retirement blog

    SH award winner SMALL (1)

    Not Enough Savings to Retire?
    Learn Six Ways to Earn Retirement Income (from home)

    You do not need special talents, skills, computer knowledge, etc. We show you multiple ways others are working a few hours a week to generate a comfortable retirement income.

    Download Free Copy

    Latest Posts

    Update on Social Security Cash Flow

    Update on Social Security Cash Flow

    What's the True Cost of Senior Healthcare

    What's the True Cost of Senior Healthcare

    Social Security Office Cheating Retirees

    Social Security Office Cheating Retirees

    Use Life Insurance in Estate Planning to Treat Beneficiaries Equally

    Use Life Insurance in Estate Planning to Treat Beneficiaries Equally

    Estate Financial Planning Has Nothing to Do With Your Wealth

    Estate Financial Planning Has Nothing to Do With Your Wealth

    Categories

    • 401K IRA Roth Withdrawals, Distributions, and Rollovers
    • Annuities for Income
    • Estate Planning
    • Retirement Advisors
    • Retirement Insurance
    • Retirement Investing
    • Retirement Living
    • Retirement Planning
    • Social Security
    • Supplemental Retirement Income
    • Tax Savings
    • Alternative Investments
    • E-Booklets
    • Pay Less Tax
    • Privacy Policy
    • Cheatsheets
    • Contact Us
    • Subscribe
    • Sitemap

    Recent Posts

    • Update on Social Security Cash Flow
    • What's the True Cost of Senior Healthcare
    • Social Security Office Cheating Retirees
    • Use Life Insurance in Estate Planning to Treat Beneficiaries Equally
    • Estate Financial Planning Has Nothing to Do With Your Wealth

    The Retirement Income Blog

    25A Crescent Drive #1508
    Pleasant Hill CA 94523
    T: 844-887-4131
    E: [email protected]

    © 2018 Retirement Income