President Obama does not agree with Suze Orman

Obama is promoting annuities to help retirees have  an income for life. He does not agree with Suze Orman when she says annuities are bad for you. "Bad  is running out of money in your golden years" - says Obama.

Top Five Reasons the President is Promoting Annuities:

1. Guaranteed payments: throughout the recent crisis, not one annuity provider ever missed a payment - not even one;

2. Unparalleled consumer protections: provides insurance benefits and peace of mind no other product can;

3. Resilience: the overall value of annuities have already regained pre-crisis levels while payments never decreased;

4. Save now, pay later: allows tax-deferred savings until you withdrawal the money;
5. Possibilities without pitfalls: provides risk-adverse consumers the opportunity to re-enter the market but with guarantees.

Obama knows that Social Security alone, especially in its ever-diminishing state, will not be enough for Baby Boomers when they retire.

The security and value of guaranteed income through insured retirement strategies has never been more apparent following the recent economic crisis.

These strategies help investors achieve a financially secure retirement.

Annuities can play a vital role in ensuring all Americans to have a comprehensive retirement plan to guarantee income for their golden years.

Call Mintco Financial Specialists to review if Annuities can be part of your retirement plan.

813-964-7100 or visit our website: www.MintcoFinancial.com

Get a quote: Annuity Quote

Variable Annuities

Maximize your potential return with stock market participation while putting Uncle Sam on hold!

Variable annuities provide the opportunity for market appreciation—through a variety of investment options—with tax-deferred accumulation and future income.

Variable annuities are designed for people willing to take more risk with their money in exchange for greater growth potential. While there is more risk associated with a variable annuity, many variable annuities offer guarantees of principal and downside protection at an additional cost (depending on contract rider availability). However, these guarantees do not apply to the investment performance or safety of amounts held in the variable investment options.

A Variable Annuity is commonly selected in an effort to increase potential return.

• Provides a monthly payout based on a variable interest rate, dependent on market performance of the underlying portfolio you choose.
• Offers multiple options for payout, including an income stream for life.
• Provides a return of your original investment (principal) through withdrawals or a death benefit.
• Can specify payouts for a fixed period of time or for life (annuitization).
• Tax deferred.
• Best for investors with medium to high risk tolerance who seek maximum growth potential.

What Does Variable Annuity Mean?

An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio.

Variable Annuities offer:

• Tax-deferred Growth Potential: Taxes are deferred on earnings until money is withdrawn.
• The Opportunity for Market Appreciation: A variety of investment options are available.
• Access to Account Value: Most variable annuities allow withdrawal of a portion of your account value without penalty. Higher withdrawals, typically 10% of principal, may be subject to a contingent deferred sales charge within the first several years of any contribution, and if taken prior to age 59½, will be subject to a 10 percent IRS penalty.
• Benefits to Beneficiaries: Death benefits paid directly to a named beneficiary, potentially avoiding probate.
• Benefits to Spouses: Spousal beneficiaries may continue the contract and its tax deferral, if this option is chosen.

Variable annuities have become a part of the retirement and investment plans of many Americans.

 Before buying any variable annuity, however, you should find out about the particular annuity you are considering and talk to your financial advisor.

If you have questions please email me at anecamara@mintcofinancial.com

Or give us a call at 813-964-7100 or 716-565-1300

www.MintcoFinancial.com

Rollover your 401k and IRA into Annuities

Americans  are rolling over IRAs and 401(k)s into annuities

To stop losing money on Wall Street and to shelter the growth of their retirement plan from the IRS with income guaranteed for life and continued growth on their money.

Annuities can provide the same income on 40 percent less. That means we can enjoy a stream of income from 60 percent of our IRA and 401(k) and have continued growth on 40 percent of our retirement plan for increases in retirement income.

Guaranteed streams of income for life will enable us to live a richer lifestyle without fear of outliving our money and/or our resources.

Americans are transferring billions into annuities for more income and more guarantees.

Financial universities and economists around the globe have concluded and documented that traditional income annuities can provide a stream of income for life for 40 percent less than a stock, bond and cash mix. The primary reason: Traditional annuities eliminate risk and losses in the market.

Income Annuities also provide joint income for life providing security for a surviving spouse with a stream of income guaranteed for life.

Annuities provide guaranteed, safe and secure growth.

Contact us with your questions: anecamara@mintcofinancial.com 

Call us at 813-964-7100
716-565-1300
Toll Free 1.888.MINTCO.8

Life Income Annuity

by Junior Boomer 

Annuities are another way to save for retirement and senior living. Essentially you make payments or pay the premium for the annuity in full and at a later date you are guaranteed payments from the money you initially invested. That is of course, the simplified explanation.

There are a variety of annuities, a variety of payment or investment options, and even more options for the disbursement or pay out period. Deciding what type of annuity to invest in is really a matter of personal choice and requires examining what you need the funds for, how healthy you are, the age of death of family members, and so on. The life income annuity is one of the most popular annuities as it guarantees income for life.

How it Works

With a life income annuity you don’t ever have to worry about running out of money in your lifetime. Disbursement payments will continue at the set amount, even after the money you initially invested runs out, until your death. This works because annuities are much like insurance policies. Many people invest and the money goes into the pot so to speak, some people pass away before they’ve used up their initial investment, so the left over stays in the pot. Some people outlive their money and still get payments because they are drawing from the pot.
Investing in a life income annuity is popular because there is security in knowing that disbursements will continue each month at the same predictable rate. This allows retirees to budget and plan the finances accordingly.

Refunds

Some people don’t like the idea of giving up their hard earned money if they pass away before they’ve gotten all of their money back through disbursements. In this case, an individual can purchase a rider or a policy that is a lifetime annuity with refund. The policy holder would appoint a beneficiary. If the policy holder dies before they receive all of their money, the beneficiary would continue to get disbursements until the money runs out. For example, if a person initially invested $50,000 and had gotten disbursement payments totaling $40,000 before they passed away, the remaining $10,000 would be paid out to the beneficiary. If no rider is purchased or no beneficiary is named, the left over $10,000 would go back into the “pot” mentioned earlier.

Inflation

Annuity payments don’t take into consideration cost of living increases so the monthly amount you get now might not be enough in 15 years. Therefore, there is an option to choose an inflation adjusted annuity. This option increases the disbursement payment every year to account for higher living expenses. It’s not standard with annuity policies so it’s something you have to consider adding if it will be worth it to you.

Contact us for a full review of your financial planning and know more about Life Income Annuities:http://www.mintcofinancial.com/contactus.asp

Annuities provide solid alternatives for investors

Info from jacksonsun

The unstable stock market and lost home values have caused people to look for alternative investments that can provide steady incomes.One of those investments being considered is annuities, which can pay the owner a constant monthly income, depending on the type of annuity purchased.

In today's violent market annuities are a good alternative.

Annuities are issued by insurance companies.

Annuities can be bought for various amounts, for example $5,000 to $5 million or higher. They can be purchased in two ways:

By paying the entire purchase price, including all principle, fees, and other charges, if any, in one lump sum.

Or paying a specific amount over a period of time.

The three most common annuities are: Fixed, Variable or Fixed Indexed.

All three products can provide a life time income that cannot be outlived.

Fixed

This annuity pays the owner the same amount of income or interest rate each month regardless of what happens in the stock, bond, commodities or other markets. For instance, if a person pays $50,000 for a fixed annuity that pays $1,500 a year, the owner will receive that amount each year until the end of the annuity's contract. The payments can last as little as 10 years, the payments can continue until the annuity owner's death or afterward to specified heirs. This is true with most other annuities as well.

Fixed Indexed annuity

These are the middle men of the annuity market, said Kaid Bowen of Insurance Network America. Bowen's company does not sell annuities; rather, the organization teaches insurance agents about annuities and how they work. A Fixed Indexed annuity does not pay a fixed amount each year, but it never loses money.

The rate of return on a Fixed Index annuity is determined by one of the financial indexes, say the S&P 500. If the S&P goes up, the rate of return goes up. If it falls, the rate of return falls.

These annuities have two features that variable annuities don't provide.

The first is that the owner of the annuity never loses money. If the financial index that moves the annuity's value, like the S&P 500, falls by 30 percent — which the S&P has done this past year — the annuity's rate-of-return never falls below zero. So, while the annuity's owner would not make money when the index falls, they would not lose money either.

But the other feature of a Fixed Index annuity limits future earnings, Bowen said. These annuities have an "earnings cap," so no matter how high the market index that affects the annuity rises in one year, the annuity holder only earns a limited amount, say 7 percent.

If the S&P 500 rises 6 percent in one year, you earn the entire 6 percent,but if it goes up 40 percent in one year, you can only earn a total of 7 percent that year.

This is an example of how a Fixed Indexed annuity works. Some of these annuities allow the owner to capture a larger return.

The third type of annuity is a Variable Annuity. These Annuities gain and lose value and do not pay the same rate of return each year. The money put into a variable annuity is invested in mutual funds, bonds or stocks. If those instruments lose money, the annuity loses money. If they gain, the annuity gains. Therefore, buyers of variable rate annuities need to look for a Guaranteed Minimum Payout Rate on that annuity. The rate is an amount which the annuity's value or its pay out rate will not fall below no matter how far the value of the underlying mutual funds or stocks fall. This guarantee comes with a fee, however, and is available on other annuities also.

On the good side, variable rate annuities have unlimited upside potential. If the value of the underlying stocks or mutual funds double, so does the value of the annuity. The death benefit on a variable annuity is a little different. These annuities usually pay the greater amount of either all the money in the account or a guaranteed minimum.

Annuities may be good for those people who need a guaranteed annual income.

All annuities have a "Surrender Charge," which is basically an early withdrawal fee. Surrender charges can be in effect for as long as 20 years, and the penalty for early withdrawal can be up to 10 percent. So one should not put all their money into annuities because of possible future financial emergencies.

If you are a risk averse investor who is just looking to hold on to what you have then annuities might be right for you, if on the other hand you are looking to make a significant profit on your investments over time, then you should definitely look elsewhere.

Have a question about Annuities?

Call us at 716-565-1300

Visit our site at www.MintcoFinancial.com

Find out if your financial advisor is a "Fiduciary"

Recently at a party, I was speaking to a lady about what she was planning to do as she retired, and she said, first find an financial adviser who is a "Fiduciary".  She went on to say how she almost lost a lot of money because she was told to purchase a variable annuity. I was thinking, so what? Variable annuities are very good vehicles when put in the right situation.  She explained that in 2008 when the stock market was looking like the brink of disaster, she decided she was going to cash out to save what little she had left and was surprised to learn if she did she would have to pay a "surrender" fee - in addition - she would have also owed the IRS, around 20%.

I went on to learn more, asking how she would owe the IRS 20% if her account was down? I was thinking maybe it was down from the highest point, because she would only pay income tax on the gain, if it wasn't inside a qualified retirement plan.  Its pretty funny how most articles/media when I read put so much fear into owning annuites. The reality is annuities are like pensions and obligations are backed by the insurance company, but yet most articles/experts had no clue what they were even talking about.  When came across a well-known attorney who worked for the SEC and teaches about mutual funds and annuities to advisers, he explained most misconceptions or problems with annuities are just the lack of education amongst the adviser and or client, and especially the so-called financial experts in the media, many of which are not even licensed or regulated.  So the easiest thing to do is say how bad annuities, but yet never talk about how bad pensions are (aren't they the same thing? guess big bad annuities sounds far better for ratings/audience purposes.)
 
Anyways, the lady and I spoke more, as she explained that she purchased her annuity from her insurance agent who also offered "financial planning." The agent "recommended" that she take her money out of her 401k and put it in the annuity as it would offer greater protection upon retirement.  Well that made sense, why would you cash in your IRA/401k, of course you are going to pay taxes, no matter what vehicle you are in.

Well, she then explained that taking advantage of the annuity wasn't the mistake per se (although her CPA thought otherwise, most likely he wasn't well versed to understand what an annuity means either) - but it was not knowing that her insurance agent / "financial planner" wasn't a fiduciary.

Fiduciaries adhere to certain professional & ethical standards, simply put they must put your interests first.

Most investors don't know: a fiduciary operates under SEC regulations and must put your financial interests ahead of his/her own. This means a fiduciary cannot give you financial advice or sell you financial products if the advice / products are not in your best interest.

Who is a fiduciary and who is not? CPAs, attorneys and registered investment advisers (RIA) are all fiduciaries.

Certified financial planners, financial planners, insurance agents and stock brokers are not.

An insurance agent or financial planner can sell you a high-load mutual fund or an expensive variable annuity in order to receive a commission. In other words, Are they operating in their best interest, or yours?

An attorney, CPA, or RIA are obligated to adhere to a Fiduciary Standard and work with you to determine whether compensation and fees are in your best financial interest or not.  Let's face it, sometimes you pay for what you get, so don't let fees be the driving force to your decision making process with your adviser.

SEC is working to change this "The recently passed financial reform bill allows the SEC to end this confusion and require all professionals who provide investment advice, whether they are brokers, financial advisers, or investment advisers, to meet the same standard of investor protection. But before the SEC can adopt these new rules, the law requires the agency to conduct [a] study. Those not currently subject to a fiduciary duty have made a concerted effort to submit their comments. Unfortunately, most investors appear to know nothing about this proposed change."

Well needless to say the lady at the party that I was speaking with, learned all this information on her own, and actually said the variable annuity once meeting with a financial adviser who did adhere to a "Fiduciary Standard", eased her mind and actually said the annuity she had was not all that bad.  She explained some of the advantages/benefits it was providing her from a protection standpoint, however, they also reviewed others that could provide her more specific benefits to her goals, needs, and wants.  The adviser she said explained the advantages of staying where she was vs. the small cost "surrender fee" in which she had never paid upfront.  From the sounds of it, I think she just kept it where it was and their plan was to move it in time when things looked brighter in the market, or who knows maybe that plan was not so bad after all.  My guess is, when she decides on her new Financial Advisor abiding by a "Fiduciary", he/she will make sure they avoid any taxation with a simple tax qualified rollover, but I would be curious what vehicle they went with, I wonder if it was a variable annuity...

Ask your financial adviser tough questions:
* Ask your adviser if he/she is legally obligated to act in your best interest and if the answer is "yes," to get it in writing.
** Ask if he / she is earning commissions on any products sold to you and how these commissions are paid. Also ask how commissions affect the price of the financial product being recommended to you.
*** If you don't understand a particular financial product that is being recommended, speak up and question your adviser, it's important that he/she and you, know the fine print and understand that with any financial product there will always be advantages and disadvantages, there is never a one size fits all.

**** MOST IMPORTANTLY, you have the right to fire your adviser, and when working with any professional (accountant, attorney, doctor, contractor) interview a few, and after reading this blog, ask the simple question next time you meet with someone who sells financial products,  "Are you a "Fiduciary"?