Who Should Consider An Annuity? - Replay

The concept of investing is often associated only with money and the pursuit of wealth, but this Annuities are a popular thing these days… why is that the case?

And are they a valid option for those planning their retirement?

In this new episode of the Common Sense Financial Podcast, host Brian Skrobonja explores the world of annuities – from what they are and the three types of annuities all the way to four common myths, Brian's "unpopular opinion" and why annuities and investments aren't in competition.

Plus, Brian reveals what he considers the best way to accumulate wealth.

• You need to keep in mind that there are plenty of unknown factors in your life, such as how long you're going to live, inflation, how the market is performing, healthcare costs, and economic shifts.
• Brian believes that the uncertainty surrounding retirement is why annuities are so popular.
• Annuities are a way to transfer risk over to an insurance company and provide some sense of safety for the future, says Brian.
• According to Statista, the risk of running out of money is a real concern for many retirees, with an estimated $2.53 trillion of retirement assets held inside of annuities.
• Brian breaks down the three types of annuities – variable, fixed-indexed, and fixed-rate – and shares a common misconception about income benefits.
• In his own words, Brian has an "unpopular" stance: he's a believer in the fact that whether or not someone should use an annuity depends on their situation.
• Brian touches upon when it makes sense for you to use an annuity and when it doesn't.
• "Capital appreciation over time" is what Brian considers the best way to accumulate wealth.
• Brian explains that annuities and investments aren't in competition, because they both have a place at different times in someone's life, depending on their needs.
• Brian goes over four common annuity-related myths.

 

 

Mentioned in this episode:

BrianSkrobonja.com

Common Sense Financial Podcast on YouTube 

Common Sense Financial Podcast on Spotify

Statista.com

Brian's article: My 5-Minute Retirement Plan

Brian's article: The Financial Fiduciary Standard Explained

Brian's article: What to Do With Cash in a Low Interest Rate Environment

 

Annuity guarantees rely on financial strength and claims-paying ability of issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by carrier. Annuities are not FDIC insured.

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC. (MAS), Member FINRA & SIPC. Advisory services offered only by duly registered  individuals through Skrobonja Wealth Management (SWM), a registered investment advisor. Tax services offered only through Skrobonja Tax Consulting. MAS does not offer Build Banking or tax advice. Skrobonja Financial Group, LLC, Skrobonja Wealth Management, LLC, Skrobonja Insurance Services, LLC, Skrobonja Tax Consulting, and Build Banking are not affiliated with MAS.

The firm is a registered investment adviser with the state of Missouri, and may only transact business with residents of those states, or residents of other states where otherwise legally permitted subject to exemption or exclusion from registration requirements. Registration with the United States Securities and Exchange Commission or any state securities authority does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Skrobonja Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be  rendered by Skrobonja Wealth Management, LLC unless a client service agreement is in  place.

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