Annuities - Success Stories
Ann is a hard-working professional that consistently saved. She has accumulated a significant sum in her companies 401(k) plan. Her mother had accumulated significant wealth and when she passed, Ann inherited a lump sum. Ann wanted to enjoy a long comfortable retirement and when her day comes, she wants to follow her mothers’ example and leave her children as much as possible.
Ann was blessed and able to have survived a cancer diagnosis just a few years ago. Unfortunately, the recent diagnosis prevented her for securing a life insurance plan which would have been a strong option as it would have efficiently passed even more tax advantaged funds to her beneficiaries.
As a conservative investor she chose to avoid market-based investment options at this stage in her life and invest in deferred annuities.
Ann chose to invest in three separate deferred annuities. She chose a 3-year, 7-year and a 10-year term. By stacking her annuities schedules, they each mature 3 or 4 years apart which provides her with greater flexibility compared to investing in one longer term option. This way she can re-assess investment or spending options as each matures.
She is also optimistic she may be able to qualify for life insurance in a few years and may be able to invest in a cash valued, tax advantaged life insurance plan at that time. Efficient Long Term Care planning options are also desirable. We are also optimistic that Ann continues to receive positive diagnosis and enjoys a bright future with her children and spoiling her grandchildren.
We also connected Ann with a local Estate Attorney she used to establish a revocable trust as way to manage her complete estate.
Julie was referred to me from a mutual friend to help her with her Medicare insurance. After we found her the right plan we looked at her investments. Her initial thought was to get a Long-Term Care (LTC) insurance plan. She had cared for her husband for years when took ill and didn’t want to burden her daughter if she needed similar care.
There are some attractive hybrid plans available to meet LTC and Life insurance needs. Both are important to Julie. However, when we went through the process of comparing plans and more importantly looking at her complete financial situation, we concluded a LTC plan simply wasn’t appropriate. It became apparent that Julie needed those funds to be available for other future living expenses.
Instead, Julie decided to fund a deferred annuity. This way her principal was protected and as the market or in this case the index went up, her portfolio grew. If the index declined, she would NOT lose any of her capitol. We chose a term that fit nicely into her budget plan so the annuity would mature well before she might need the funds.
Also, if her final day arrived too soon, her annuity will efficiently pass to her beneficiaries in the same way as a life insurance policy would, free of probate cost and delays and free from creditors.
Julie is much more comfortable now that she has a plan that cares for her personal needs now and well into the future.
We are all different, we are in different situations and have different priorities and different resources. These examples are here to provide a general picture of the ways we help others protect their family and provide for their family over the long term. Insurance is forward looking and when applied properly, a very valuable tool.
We look forward to hearing your story and providing you with options that help you protect and prosper.