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Does this sound like you or someone you know?

• "My investment account has lost so much money, I can't afford to transfer my funds to an annuity, the market might go way up."

• "If I get out now, I will never recover my losses"
  These statements indicate that someone might be suffering from the “deer-in-the-headlights” syndrome— these people are frozen and afraid to make a move.

If this is you, consider an Indexed Annuity.

Indexed Annuities are tied to various indexes, such as the  S&P Index, the Nasdaq, the Moody Bond Index, Lehman Brothers Bond Index, The Dow, etc., and they offer the opportunity to choose how your annual rate of return will be calculated. With an Indexed Annuity, you can take advantage of the market improvements without the risk of loss of principal.

Indexed annuities offer a win-win situation for investors— you can receive a portion of the upside gains, while at the same time eliminate all downside risk. So, if you are worried that if you get out of the market when you have already lost 30%, 40%, even 50% or more, don’t— with an Indexed Annuity, you are able to benefit form the upside increase.

Keep in mind that not all indexed annuities are the same, however, and there are several moving parts in an Indexed Annuity that allow the issuing company to change.

See  "The Truth About Index Annuities"

• Another popular strategy used to help offset the cost of moving from a poor performing Fixed or Variable Annuity or to offset surrender charges that might be imposed or losses in the market, is a Bonus Annuity or Bonus Index Annuity.
  

Over the past several years, Bonus Annuities/Bonus Index Annuities have been introduced by a number of annuity issuing companies. This type of annuity does have higher penalties for early withdrawal, however, the bonus can be as much as 10% or more of your premium payments. In the early years, if you want to surrender your annuity prior to the policy term, you will pay a hefty penalty that exceeds the bonus. So be sure you have adequate liquidity if you are interested in investing in these types of annuities.

Consider Bonus Annuities if you are in your retirement asset accumulation period and do not need to have full access to your funds right now, but in five to 10 or more years, you know you will want a flow of income from your retirement funds.

Another new feature of annuities to consider is a fairly new benefit called the "Guaranteed Lifetime Income Benefit." This feature can be perfect for those for whom income for retirement is their ultimate goal. GLIB provides lifetime annual income while maintaining access to your money.

Ask how you can get as much as 26% guaranteed the first year credited to your Guaranteed Lifetime Income Benefit.

Another Retirement Planning Tool....

Consider a Charitable Remainder Income Annuity Trust (CRITs).

CRITs are a powerful financial planning option. With a CRIT, the trust donor and family receive a guaranteed flow of income for a set period of time or for life and may also qualify for a current tax deduction.

After this, the remaining trust assets go to the charitable organization(s) you name. Since the trust is not part of your estate, trust assets are not subject to estate taxes.

If your health allows, you may also consider a life insurance policy, with part of the trust income used to pay life insurance premiums. Then, upon your death, the life insurance policy would pass to your heirs while the trust assets pass to your named charity.

• Consider Index Immediate Annuities for current income.

Immediate Annuities

• Use a Fixed Annuity and an Immediate Annuity to create a Split-Annuity.
  

Split annuities divide your money into two portions. One portion is set aside and left to grow back to your original total deposit amount. The other side is set up to pay you an income stream over the same time frame. This type of plan is designed to give you current income and preserve your original deposit amount. Rather than buying one split annuity policy from one company, find the company with the most competitive pay out and then the best company for letting the other portion grow. Most companies focus their strengths in one area or another. Rarely will the same company offer the most competitive products in both areas.

Let us know if you need any help or have any questions regarding these or any other investment strategies.

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