In the most basic way, annuity can be described as an investment contract that an investor enters in with an insurance company and enjoys special tax benefits. Adding it to your investment portfolio can prove very profitable but this starts by selecting the right investment and the right annuity advisor who understands your financial goals.
Annuity investment choice is associated with several advantages. It is an investment vehicle that guarantees steady income especially after retirement. It also increases income that comes at retirement; it also gives a way to protect your assets from any claims from creditors and any probate. Other than this, it is the best way to ensure that you pass more to your heirs.
They have several benefits some of which include the fact that they guarantee that you cannot run out of money, increase in future retirement income is guaranteed for every year, protects asset from the creditors and probate and is the safest way to pass more to heirs as inheritance.
Annuities come in several types which include immediate annuities, the equity indexed, variable and fixed annuities. Each of these varies in one way or the other and has its own merits and demerits. It is the job of your consultant to outline all these for you and tell you which option is the best and which one is not.
A financial consultant should only encourage his client to go for that investment option that is in his best interest and not just anything. However, the consultant has a responsibility to educate the client on the investment vehicle that he is interested in or just curious about. These consultants are usually expected to adhere to a strict code of conduct, practice general ethical principles and avoid unfair marketing practices.
Some practices that should be avoided by any professional advisor in annuity market include using false information to advertise, avoiding and form of misrepresentation of facts when selling the investment products, the issues of defamation, rebating, using bait and switch to make client by what they had not planned for and twists.
It is also required that an annuity consultant, just like other financial advisor avoid talking ill of character, business or services offered the rivals unless they have proven civil or criminal records. Instead, they should only focus on how their clients and prospective clients are going to benefit from the products they offer.
Many financial consultants would not recommend their clients to buy products from insurance firms that have issue with the going concern. With good ground work however, the client investment may not be at risk at all. They are the best option to mitigate against the longevity risks.
Here are the tips for consultants in this market, it pays to go with bigger insurance firms as they have less solvency risks and is well diversified, pay close attention to ratings by S&P, Fitch or Moodys, and clearly understand the rules of associations and the limits. This should ensure that clients get the best products from them.
Annuity investment choice is associated with several advantages. It is an investment vehicle that guarantees steady income especially after retirement. It also increases income that comes at retirement; it also gives a way to protect your assets from any claims from creditors and any probate. Other than this, it is the best way to ensure that you pass more to your heirs.
They have several benefits some of which include the fact that they guarantee that you cannot run out of money, increase in future retirement income is guaranteed for every year, protects asset from the creditors and probate and is the safest way to pass more to heirs as inheritance.
Annuities come in several types which include immediate annuities, the equity indexed, variable and fixed annuities. Each of these varies in one way or the other and has its own merits and demerits. It is the job of your consultant to outline all these for you and tell you which option is the best and which one is not.
A financial consultant should only encourage his client to go for that investment option that is in his best interest and not just anything. However, the consultant has a responsibility to educate the client on the investment vehicle that he is interested in or just curious about. These consultants are usually expected to adhere to a strict code of conduct, practice general ethical principles and avoid unfair marketing practices.
Some practices that should be avoided by any professional advisor in annuity market include using false information to advertise, avoiding and form of misrepresentation of facts when selling the investment products, the issues of defamation, rebating, using bait and switch to make client by what they had not planned for and twists.
It is also required that an annuity consultant, just like other financial advisor avoid talking ill of character, business or services offered the rivals unless they have proven civil or criminal records. Instead, they should only focus on how their clients and prospective clients are going to benefit from the products they offer.
Many financial consultants would not recommend their clients to buy products from insurance firms that have issue with the going concern. With good ground work however, the client investment may not be at risk at all. They are the best option to mitigate against the longevity risks.
Here are the tips for consultants in this market, it pays to go with bigger insurance firms as they have less solvency risks and is well diversified, pay close attention to ratings by S&P, Fitch or Moodys, and clearly understand the rules of associations and the limits. This should ensure that clients get the best products from them.
This article collected, selected and written by: Author Van Hoc
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