Five reasons people buy Fixed Annuities by Chris Conklin
A few weeks ago, I went into a branch of a small, locally owned savings bank near my home and happened to see one of their customers filling out the paperwork for a money market account yielding 2.25 percent.
I thought this was curious, since it’s easy to find an FDIC-insured money market or savings account on the Internet yielding several percentage points higher.
So, I asked the gentleman, “Why are you opening this particular account?” He explained that he has received loans from this bank in the past, and keeps some deposits with them as a “thank you” for loaning him money when he needed it – a very logical answer.
This man is not naïve. He knows he could get a better financial product elsewhere, but he has very good reasons for buying the product he is buying.
Some commentators and even regulators believe that buyers of fixed annuities, including index annuities, are naïve. The Wall Street Journal reported that the Massachusetts Securities Division has gone as far to say, “For investors over age 65, annuities are probably not for you.” This is a shocking statement, considering there is more annuity money owned by people older than age 65 than by those younger than 65.
Without denying that there are situations where a naïve client purchases a fixed annuity without adequately understanding it, let’s address the question: Are there rational reasons for people to buy fixed annuities?
And the answer, of course, is yes. Let me give you five.
1. Safety
Without question, safety is the top priority for every person when they are saving their money. But safety means different things to different people. To some people, safety means putting money in the bank because banks have FDIC insurance. To others, it means having money diversified across a variety of stocks. To some people, safety means picking their own stocks after they have researched the underlying companies; and to others, it means entrusting their money to professionals.
I think we can agree that no one puts their money in a place where they expect to lose it. They put their money in a place where they expect to get it back one day, hopefully after experiencing some nice growth.
The great thing about fixed annuities is that they uniquely offer three levels of protection, which makes them the gold standard of safety.
Level No. 1: By contract, a fixed annuity guarantees that your principal is protected and that you can get it back again. There may be a penalty for early withdrawal, but as the annuity owner, you can control your withdrawals. So, there is no circumstance that can cause you to lose money in a fixed annuity.
Level No. 2: Even if your insurance company fails, the value of your annuity (up to $100,000, or more in many states) is guaranteed by your state insurance guaranty fund. In other words, your annuity is backed by a government guarantee similar to those that protect your bank deposits.
Level No. 3: If you have a problem with the insurance company that issued your annuity and you want to get a regulator involved, the regulator is located in your home state no matter where that insurance company is located. Here, annuities even beat money in the bank. Since most banks are regulated at the federal level, your bank’s regulator may be in Washington, D.C.
With these three levels of protection, there is nowhere safer for your money than a fixed annuity.
2. Growth
Once people are satisfied that their money is safe, the next objective is to have that money grow as quickly as possible. With a fixed annuity that carries a rate of interest, that means they want the highest possible rate of interest.
Fortunately, insurance companies are not ignorant of that fact. Many carriers offer annuities with very attractive rates of interest. And, the annuity industry invented index annuities precisely so that they could offer even better rates of interest under certain conditions.
3. Tax advantages
Again, people want their money to grow as quickly as possible, and besides having a high rate of growth, they want some type of tax advantage that helps to accomplish that goal.
Annuities cannot claim to have the best tax advantage possible. However, neither can stocks, stock mutual funds, or even 401(k)s or IRAs. The fact is that no tax advantage beats that of your home, where you can deduct the interest that you pay on a mortgage loan and pay no taxes on the growth of the market value of your home.
Even though annuities cannot claim to have the best tax advantage possible, the fact is that they do have a tax advantage, and that is better than no tax advantage. Some people buy annuities for their tax deferral.
4. Liquidity
Most people recognize that liquidity, safety and growth do not co-exist very well.
For example, with a checking account, you get excellent safety and total liquidity, but most checking accounts pay little or no interest. With stock market mutual funds, you get good liquidity and hopefully a good rate of growth, but you are sacrificing some safety.
So, if an annuity is going to give you bulletproof safety and a good rate of growth, there needs to be some sacrifice in liquidity. Otherwise, we might as well have everyone close their checking accounts and put the money in annuities.
The good news is that most annuity products build in enough liquidity to make many customers comfortable. Even retirees who need to withdraw money every year to supplement their incomes can find annuities that allow them to take such withdrawals.
The fact is that if you have an annuity that lets you take out 10 percent of your value every year, and you consistently need to take out more than that, you may be burning through your retirement savings at a rate you cannot sustain without running out of money during your lifetime.
5. Estate advantages
At some point in their lives, many people consider what will happen to their money after their death. This is another area where annuities may not necessarily have the best treatment for everyone’s situation, but annuities do have some estate advantages that could be very helpful.
One advantage is speed. With an annuity, you get to name a beneficiary and typically avoid the probate process, so an annuity can be the quickest way to get money to a beneficiary after your death.
Another advantage is privacy. With an annuity, you get to name a beneficiary and avoid passing assets through your will. For example, this can allow you, to direct money to a particular child who has been very helpful to you as you have aged, while still having your will provide for an equal division of assets between all your children.
The point is that there are a lot of perfectly valid reasons why someone, even someone over the age of 65, would want to buy an annuity. These people are not necessarily naïve.
It would be nice if the commentators and regulators in our industry could find a way to allow annuity salespeople to help customers buy fixed annuities without constantly being subjected to negative press.
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There are many types of annuities: indexed,immediate fixed, variable annuities and some with long term care and living benefits, access to funds when terminal or critical illness arise. Contact Connie Dello Buono CA Life Lic 0G60621
at 408-854-1883 motherhealth@gmail.com for annuities suited to your needs and wants and retirement goals.
200 Marketing Weapons by Jay Conrad Levinson
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These guerrilla marketing weapons should all be considered for promoting your product, service or website offline. Notice how more than half of them are free.
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Diet Soda and Cancer
Diet Soda and Cancer
- An industry-funded study claims that diet soda drinkers lose weight faster than those who don’t drink ANY soda at all
- The study comes on the heels of rapid reductions in diet soda sales. Last year, diet Coke and diet Pepsi both dropped by nearly seven percent
- Research over the last 30 years has repeatedly shown that artificially sweetened no- or low-calorie drinks and other “diet” foods tend to stimulate your appetite, increase cravings for carbs, and stimulate fat storage and weight gain
- Studies have also linked diet drinks and artificial sweeteners to a number of other, more serious health hazards, including increased risk of stroke and cancer
- Artificial sweeteners trick your body into thinking that it’s going to receive sugar (calories), but when the sugar doesn’t arrive, your body signals that it needs more, which results in carb craving
Research has repeatedly shown that artificially sweetened no- or low-calorie drinks and other “diet” foods tend to stimulateyour appetite, increase cravings for carbs, and stimulate fat storage and weight gain. Artificial sweeteners basically trick your body into thinking that it’s going to receive sugar (calories), but when the sugar doesn’t arrive, your body signals that it needs more, which results in carb cravings. Most people give in to such cravings and end up overeating on other foods and snacks.
This connection between sweet taste alone and increased hunger can be found in the medical literature going back at least two decades. But artificial sweeteners also appear to produce a variety of metabolic dysfunctions that promote weight gain. Here’s a sampling of some of the studies published through the years, clearly refuting the beverage industry’s claims that diet soda aids weight loss:
| Preventive Medicine, 198612 | This study examined nearly 78,700 women aged 50-69 for one year. Artificial sweetener usage increased with relative weight, and users were significantly more likely to gain weight, compared to those who did not use artificial sweeteners—regardless of their initial weight. According to the researchers, the results “were not explicable by differences in food consumption patterns. The data do not support the hypothesis that long-term artificial sweetener use either helps weight loss or prevents weight gain.” |
| Physiology and Behavior, 198813 | In this study, they determined that intense (no- or low-calorie) sweeteners can produce significant changes in appetite. Of the three sweeteners tested, aspartame produced the most pronounced effects. |
| Physiology and Behavior, 199014 | Here, they found that aspartame had a time-dependent effect on appetite, “producing a transient decrease followed by a sustained increase in hunger ratings.” |
| Journal of the American Dietetic Association, 199115 | In a study of artificial sweeteners performed on college students, there was no evidence that artificial sweetener use was associated with a decrease in their overall sugar intake either. |
| International Journal of Obesity and Metabolic Disorders, 200416 | This Purdue University study found that rats fed artificially sweetened liquids ate more high-calorie food than rats fed high-calorie sweetened liquids. The researchers believe the experience of drinking artificially sweetened liquids disrupted the animals’ natural ability to compensate for the calories in the food. |
| San Antonio Heart Study, 200517 | Data gathered from the 25-year long San Antonio Heart Study also showed that drinking diet soft drinks increased the likelihood of serious weight gain – far more so than regular soda.18 On average, for each diet soft drink the participants drank per day, they were 65 percent more likely to become overweight during the next seven to eight years, and 41 percent more likely to become obese. |
| Journal of Biology and Medicine, 201019 | This study delves into the neurobiology of sugar cravings and summarizes the epidemiological and experimental evidence concerning the effect of artificial sweeteners on weight.
According to the authors: “[F]indings suggest that the calorie contained in natural sweeteners may trigger a response to keep the overall energy consumption constant. …Increasing evidence suggests that artificial sweeteners do not activate the food reward pathways in the same fashion as natural sweeteners… [A]rtificial sweeteners, precisely because they are sweet, encourage sugar craving and sugar dependence.” |
| Yale Journal of Biology and Medicine, 201020 | This review offers a summary of epidemiological and experimental evidence concerning the effects of artificial sweeteners on weight, and explains those effects in light of the neurobiology of food reward. It also shows the correlation between increased usage of artificial sweeteners in food and drinks, and the corresponding rise in obesity. |
| Appetite, 201221 | Here, researchers showed that saccharin and aspartame both cause greater weight gain than sugar, even when the total caloric intake remains similar. |
| Trends in Endocrinology & Metabolism, 201322 | This report highlights the fact that diet soda drinkers suffer the same exact health problems as those who opt for regular soda, such as excessive weight gain, type 2 diabetes, cardiovascular disease, and stroke.23, 24 The researchers speculate that frequent consumption of artificial sweeteners may induce metabolic derangements. |
Plan your day or others will plan for it
Plan your day or others will plan for it
Plan your day or others will use your day for their plans. Share good thoughts or others bad thoughts will fill your mind.
Develop good habits or others will influence their habit to you. Spend your day with your good thoughts and actions or others will influence your day based on their thoughts and actions.
Go outside and share happy memories or you will be following others in creating their memories.
Reflect on what is best thing to share at each moment to capture happy thoughts, share happy memories and create happy memories.
Remember to say I love you to the ones that matter to you the most and spend even few minutes in person or phone to the one you love.
Kindness and generosity expands as you share yours, others will do the same creating happy memories one person at a time.
Live like you are not alone, but in a journey with others with the goal of spreading cheers, good thoughts and loving actions.
So share a hug, say I love You often and embrace life like we are all participants in the journey of life, full of colors and positive spirits.
Destiny or Luck
Destiny or Luck
As we are all travelers in this world, we come and go. We either touch someone’s life or just gathering dust. We connect or disconnect. We spread love or hate. We influence others, motivate them or demotivate them.
As I was spending my working hours at Starbucks, I saw a woman in her mid forties sitting or reclining on a chair as she has a neck support or neck band around her neck.
So, I gathered the extra newspaper selecting the business section that is left on the table beside her. I asked her what happened to her neck and she told me that she just had surgery and joint inflammation.
So, I mentioned turmeric and pineapple to help her inflammation. I said I am not a doctor but my 79 yr old mom loves Zyflamend which has turmeric and ginger in it. I too uses a blend of these herbs in coconut as massage.
She said that we are in the same page, she has been taking these herbs and supplements as she used to be a massage therapist.
And we talk and talk. And parted and she said blessings to you Connie. And I said the same.
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I was calling some important people in my address list and happen to remember to call a woman I met at the gym. She remembered me and we chatted and asked her what makes her busy nowadays. She said that she is taking the CBEST and that she wanted to teach art. So I taught her some tricks on taking the math test as I have taken the same test and motivated her to teach art and mentioned my daughter who went to Lincoln high, a performance/magnet Art HS where my daughter received her HS and as a result of the contribution of her art teachers became a congressional artist award recipient.
She thanked the math taking tips and will email me on the next zumba class that we will both attend.
And so we said to see each other soon.
Anti-arthritis oil and balm for sale, first launch
Dear Friends,
See you all Sat and Sunday afternoon at my San Jose house to launch my first product, an anti-arthritis balm/oil which can be used internally or externally. It is priced around $50 per 16 oz container. Your feedback is important to me. I will announce this at my blog today, www.clubalthea.com . It contains turmeric, ginger, coconut oil, grapeseed oil and peppermit essential oil. My curiosity and exposure at Whole Foods created a spark in this product. I also was encouraged to create one as my mom was seeking a massage balm for her arthritis at age 79. I used the oil for my body as massage healing oil to ward off any disease process that might be growing as a result of aging and menopause.
My mom and I tested the product. The original coconut oil was bought at Whole Foods. I am using the same container. I have not yet asked Esther, my artist daughter, for the art cover design. I also plan to sell the formula to Whole Foods and Doterra.com
You may forward this email to others. Sorry for the short notice. When creativity strikes, you have to capture the moment right away.
Regards,
Connie Dello Buono
408-854-1883
motherhealth@gmail.com
Use in service distribution to lower 401k maket risks
Half of your 401k are taxed at distribution and before that can incur market risks since there is no downside protection like the index annuities, index IULs or guaranteed whole life insurance. So the government few years ago, allowed employees to take control of a portion of their 401k to avoid market risks and taxes during distribution.
Contact Connie Dello Buono CA Life Lic 0G60621 at 408-854-1883 motherhealth@gmail.com to help you navigate with index annuities, index IUL and whole life insurance.
The general rule is that individuals cannot take a distribution from their 401(k) until a triggering event occurs (for example, you are terminated from your employment or retired). However, if the 401(k) plan document permits, you may be able to take a distribution of certain employer contributions even while you are still working.
For those who wanted a similar to 401k, call Connie.
For 1.2% return of your bank savings using Bank of the Internet in San Diego, call Connie.
If you need a financial planner who will strategically prepare you for any events in the future to secure you financially and protect your wealth, call Connie.
Living Wills & Medical Powers of Attorney ; An obituary
Living Wills & Medical Powers of Attorney ; An obituary
Your health care directives — including your living will and power of attorney for health care — might be the most important estate planning documents you ever make. Giving your family clear, written direction about your end-of-life wishes can spare them anguish — and make sure you get the kind of care you want. With these documents, you can set out the kinds of treatment you want, or don’t want, and name someone to make sure your wishes are honored.
Without guidance from you in these legal documents, family members and health care providers can easily become uncertain about treatment decisions. And when family members disagree about what course to follow, the consequences are sometimes rifts that are never resolved.
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He passed just 3 days before their 16th wedding anniversary. Some things she learned:
1. Tell your people every day that you love them.
2. Don’t pray for an easy life. Pray for strength.
3. Good to have an advanced directive to keep friends and relatives from nagging why you did or didn’t do such-and-such medical intervention.
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Obituary
Jim (James) Christensen fell asleep in the arms of the Lord on August 19, 2014, after a brave struggle with glioblastoma brain cancer. He is survived by his wife Rosemarie, and children Emma and Daniel, as well as mother Margaret Anne Christensen, brother Scott Christensen, and sister-in-law Michele Christensen. He is pre-deceased by his father, Nels Oluf Christensen, who passed away in 1984. Jim was a devoted family man whose energy, generosity and integrity enriched the lives of those whom he encountered in his many diverse interests.
Jim was born at Fort Ord in California, and grew up in Marina, CA. He later earned a Bachelor’s Degree in English at Sacramento State University. He was a loyal, conscientious 28-year employee of National Semiconductor (later Texas Instruments), where he worked as a Facilities Maintenance Technician.
From age 4, Jim was a lifelong rail fan. Each Christmas, he ran toy trains for hours around the Christmas tree on the train board his father had made. Jim’s grownup interests included N scale model trains, train photography and train-chasing tourism.
As a young adult he became a Cross Country and Track and Field champ. He had a 1978 Seaside High School mile time of 4 minutes 18 seconds, and a 1980 Monterey Peninsula College 5K time of 14 minutes 42 seconds, records that both stand today. He frequently ran 5K and half marathon events, and was also a member of the Ryan’s Sports Shop (Santa Clara) running team. These events resulted in a collection of several dozen running T-shirts that were lovingly kept past torn and tattered stage.
Jim was a hard worker whose early endeavors included delivering the Monterey (California) Herald paper daily to over 100 customers. He met Rosemarie, his wife of 16 years, while leading a Sierra Club volunteer habitat restoration event at Rancho San Antonio in the Los Altos hills. Together they had a joyful, outdoors-oriented life filled with hiking, camping, biking, photography, and frequent road trips to rail fan venues and to State and National Parks, including their favorite, Yosemite. Jim took special delight in sharing his interests and adventures with his children, frequently volunteering for school, sports, church and scout events. Through all these events he touched many lives and will be greatly missed.
Visitation will be held Tuesday, August 26, 2014 from 5:00PM – 9:00PM at LIMA & CAMPAGNA SUNNYVALE MORTUARY, 1315 Hollenbeck Ave., Sunnyvale. A Funeral Mass will be held Wednesday, August 27, 2014 at 3:00PM at St. Julie Billiart Church, 366 St. Julie Drive, San Jose.
In lieu of flowers, donations may be made to the Sierra Club or the American Cancer Society. – See more at: http://www.limacampagnamortuaries.com/obituary/James-Christian-Christensen/San-Jose-CA/1411921#sthash.zpRd3Qps.dpuf
Alerts you of your expenses, a personal concierge, travel club and more
Would you like an app that is going to help you budget daily and ready your expense report before Tax season comes?
Check out this app:
https://clubalthea.wakeupnow.com
If you are alerted of your daily expenses and you can see the big picture of where your money goes, would you be able to save more each day and not incur late fees and other unnecessary costs?
To save first is our goal and then lower our daily expenses and pay ourselves first in form of savings plan, be it through your IRA/401k , index annuities or perm life such as Index Universal Life and/or whole life Insurance or other safe investments.
Seek a financial planner who can help you navigate through your retirement years with total protection from asset, health threats such as disability and long term care, income, estate, retirement, life, wealth and many unforeseen future events.
Ensure proper protection first and start your wealth building and review yearly with your financial planner. Every working adults must have a financial planner who can strategically plan for your retirement.
Know your current financial scenario to equip yourself with all the tools that a financial planner can provide.
Connie Dello Buono
Financial Planner
CA Life and Health Lic 0G60621
408-854-1883
motherhealth@gmail.com
1708 Hallmark Lane San Jose CA 95124
Offices: San Jose, San Ramon, Peninsula and other locations