Will You Be Able To Retire, And Stay Retired?

When baby boomers were growing up and growing their hair, people said that “these kids don’t know what they want.” Today, baby boomers are becoming very clear about what they want in their financial plans: No BS, Guaranteed sustainable income, simplified plans that are easy to understand, reduced fees, low risk, and upside growth potential.Did I mention no BS? They want to retire and stay retired. This generation told their parents to quit worrying so much and enjoy life a little. Now, it’s their turn– they want to stop worrying so much and stop watching the market chew up their money. They like things like hybrid cars, and we’re also finding that once they learn about Hybrid annuities, they like them, too. They like the idea of combining the protection from loss and guarantees of fixed annuities with the potential for upside growth and higher paying income riders that Hybrid annuities now offer.

The new generation of hybrid vehicles have the power to take to the freeway, but don’t cost much to drive around town. Baby boomers are finding that the new generation of Hybrid annuities get better mileage (more income), cost less to operate (no admin or management fees), and no breakdowns on the freeways (guaranteed against loss even in the worst market conditions). Variable annuities cost more, do not protect principal, and have reduced their income payouts so that they lag in that area. Their only claim to fame is the ability to take advantage of the market’s upside. But when the upside is diluted and the downside is lurking, many are moving toward the sure and safe bet: Hybrid index annuities, also known as fixed index annuities.

Those that explore beyond the fear mongering found in the money magazines (woefully under-researched) learn that Hybrid index annuities don’t aim to hit the ball out of the park, they are content with singles and doubles. They also do not hit the owner with fees every year. Variable annuities assess your principal values every year with fees, making gains smaller and losses bigger. When you read about the “fees in annuities”, the author must be referring to variable annuities because variable annuities are the only kind of annuity which deduct fees from your account every year, come what may.. Hybrid index annuities do not hit the owner for management, insurance, and investment fees (separate account fees) every year. With the Hybrid, what you see is what you get when it comes to your net return, with no further fees deducted. This one key fact makes them very suitable for IRAs and 401k rollovers. With no additional fees, you can feel free to place your 401k or 403b into an IRA Hybrid index annuity. In fact, this option is growing in popularity.

Hybrid annuities are on the rise. The combination of the safety floor under your money, prevention of market losses, upside market linked potential, lower costs, and income payouts that can be significantly better than the withdrawal benefits on variable annuities, is a potent combination for almost anyone’s retirement plan. Rretiring engineers, teachers, medical professionals, and business owners are prime candidates for hybrid annuities. The demand for hybrid index annuities is up 14% according to LIMRA as of this writing, while the demand for variable and immediate annuities is down.

Income is the main reason you turn to annuities. In a world of 1% interest rates at the bank and flip-flopping stock markets, thinking people are realizing the clock is ticking. It’s time to get set up for the long run with the bulk of one’s money. Building a floor of income that can’t be outlived is a great place to start. Only an annuity can provide that floor on a guaranteed basis with no muss or fuss. Bank accounts can’t. Mutual funds can’t. ETFs can’t. Bond ladders can’t–the rates are too low and there will be a lot of fussing with the ladders down the road. Therefore, annuities are finding their way into the financial plans of thinking people who can do simple math.

Steve Jurich is the Managing Member and founder of IQ Wealth Management, a Registered Investment Advisor and an A+ Ranked Accredited Member of the Better Business Bureau. Steve is a past Graduate of the Institute for Wealth Management’s Accredited Asset Management Program, and Editor-In-Chief of, MyAnnuityGuy.com™ with research on more than one thousand annuities. Mr. Jurich holds licenses in securities (Series 65, Series 63), life insurance, and real estate brokerage. His investment experience and keen insight have been shared on more than 350 radio appearances since 1995. He can be heard Mondays and Wednesdays at noon as the host of Journey To Wealth on Money Radio. Visit www.IQWealthGroup.com

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