What Are Annuities?

Retirement Annuity works more like other insurance policies and individual retirement account (IRA).

As you know, an individual retirement account (IRA) works like a life insurance where your beneficiaries will be provided a considerable amount of money in the event of contributor's death.

However, in retirement annuity, your annual contributions (annuity) are meant to give you more financial protection throughout your retirement period.

It secures you more of financial loss in cases of bankruptcy and financial loss through lifestyle or business venture.

How Does it Work?

In this scenario, you can pay a sum of money as your annual contribution (distribution phase) and reap them later during the accumulation phase.

Your contribution is based on your ability to subsidize payment for a specific plan you have subscribed to upon enrollment and how long you have contributed for the said plan.

Types of Retirement Annuity

There are many types of retirement annuity plans to choose from and each tailor to each client's ability to pay and their preference of payment during distribution upon reaching retirement age. They are immediate annuity, deferred annuity, variable annuity, and fixed annuity.

The above retirement annuity types suit individuals depending on their preference, ability to pay and their need for such benefits.

Whatever retirement annuity plans you have enrolled to, it a good way to hold tax charges while keeping your savings for retirement intact. If you need it, get help to learn what are annuities and how the work for your security.

There are many reasons for this not the least of which is spreading out the risks as well as the rewards so that one bad day on the market doesn't do in your entire financial future.

Many people who are beginners to investing have learned along the way that the price to be paid for failing to diversify can be very high indeed. If you aren't prepared to pay that price then the solution is probably much simpler than you may realize.

The first thing you need to realize is that there is no perfect solution that is always guaranteed to be a safe investment (there is no such thing as a risk free investment only those that carry less risk than others). With this in mind you can minimize the risks by spreading them out between several different stocks, bonds, and funds.

It is important to seek the services of a financial adviser if you can at all afford to do so.

In all honesty you really can't afford to rest your financial future in the hands of an amateur who knows very little if anything about the way the stock market works and how best to structure your portfolio.

If for what ever reason you choose to go it alone there are many options available to have a truly diverse portfolio.

During the dot com bust a few years back and the sub prime real estate bust more recently many people learned the hardships that can come about by having too much invested in one industry.

Had they spread their investments around a little better many people would not have been hit nearly as hard as they were.

Once you've done that you will want to purchase a few stocks, some mutual funds (these are much lower risk funds that are designed to steadily but slowly build value over time), and a few CDs to balance things out.

There are all kinds of formulas as to how to do this for maximum effect but the truth of the matter is that you can't really determine the best route for you to take without knowing a little more about your current situation and your goals and plans.

This is why a financial adviser is so important to provide you with a beginners guide to investing. Different concentrations of stocks, bonds, and funds are preferable at different stages in your life and according to the amount of money you currently have set aside.

Ultimately in diversifying you want to avoid having too great of a concentration in one stock, one sector, and one investment type whenever possible. You never want to rest your entire financial future in one stock, bond, or fund because that really is an all or nothing risk and rarely turns out good.

If you get nothing else from a financial planner you really should consult with one about how to best diversify your investment portfolio.

He or she can help you get started along the path to financially planning a brighter future than you may have ever imagined for your family.

What Is Your Investment Plan Today?

The Financial Markets Are In Turmoil,
People Everywhere Are Losing Their Savings & Portfolios Once Filled With Potential Are Vanishing

Weary at the idea of seeking financial advice in these times? Understandable! After all, each passing day seems to bring more and more bad news out of Wall Street.

Listen, if you can pull yourself away from the 'doom and gloom' coming from the media each day, you can actually place yourself in a great position with your financial planning.

Because the markets are down, you have the wonderful opportunity to take full advantage of the current investment situation. Yes the Dow has fallen, there is no denying this fact. Do you know where it was 10 years ago? How about 25 years ago?

Seeking financial advice is serious business. FinancialAdvisor4u has put together a team of financial advisors who can answer those questions, and those you have about your own personal financial situation.

Whether you seek advice on retirement planning, your 401k, safe investments or how annuities can work in your favor, let's work together finding the perfect financial advisor for you. Fill out the form below for a Free, no obligation, phone consultation.

It's that much needed 'bridge' between your financial goals and the qualified financial advisor who can help you Today!




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Financial advice is literally everywhere. Everybody has an opinion to give it seems, friends, family, neighbors and even strangers.

A lot more people therefore are going to financial planners.
They consult these advisers in the belief that these people know better.

Here are some things you would want to know about your financial planner

1. Is the person qualified?

Anybody can say that he or she is an expert financial planner. No particular degree or experience is required. There is no department of government that oversees planners. Of the quarter of a million financial planners, only an approximate of 40,000 are CFP (Certified Financial Planner). The CFP is the most acknowledged designation for financial planning.

Even with this certification, there are no guarantees. It takes experience and continuous education plus a high degree of ethics and integrity to be a professional planner.

One excellent option is to check his CFP status as well as his PFS (Personal Financial Specialists) and ChFC (Chartered Financial Consultants) status.

2. Is he looking after your interest or his?

Professional financial planners take their duties on your retirement plans seriously. Your needs are ahead of his or hers.

Unfortunately, most of the so called financial planners are just trying to sell you investments. They are not obligated to provide the best retirement plan but are only prevented from selling you an unsuited plan.

The best option is to ask the financial planner to furnish you a printout of code of ethics that he needs to comply. It is a difficult read, but knowing the standards which your planner abides is a must.

3. How is your planner getting paid?

Several financial advisers still get most of their income through commissions. Many gracefully slide through the 'commission' tag by giving themselves the title 'fee-based' financial planners. They also simply duck the compensation subject.

Commission is not really bad, but it does create a complexity of interest with the retirement planner. Your retirement planner should voluntarily tell you how he gets paid, or at least give a direct answer when asked.

4. A slice of the pie or the whole thing?

An excellent financial planner takes into account the whole financial situation of a client, including their plans for estate and budgets. That is the only true way of looking at a comprehensive retirement plan.

Most of these financial planners simply focus on a single projection of a client's financial situation. In most cases, they focus only on the area in which they have received any training.

When your adviser focuses on a single or only a few aspects of your retirement plan, get one that will take into account your entire situation.

5. This is what I'm selling. This is what you must buy

Financial planners that do not have the necessary education in comprehensive retirement planning often rely on what their companies require them to invest in.

For example, a stockbroker may possibly hard sell certain mutual funds or individual stocks. This is also true even when the best utilization of the money is on paying the mortgage or raising the emergency fund.

Your retirement planner must be able to discuss intelligently about methods other than his recommendations. If he is not able to, or simply insists that his way is the best way, look for another adviser.

Investing in your financial future is the greatest gift you can give yourself by far.

If you aren't sure where to begin or how, perhaps it's time to seek the services of a qualified financial advisor. His advice may prove invaluable and may give you a much more comfortable future than you would have ever imagined left to your own devices.

Click this link to arrange a free retirement financial planning consultation with one of our professional financial advisors & get our free Investment Report to download.