http://www.my401kannuity.com/drawbacks-to-401k-annuities/ 401k Annuities - Should you be investing in guaranteed income? Mon, 14 Feb 2011 19:14:25 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.my401kannuity.com/drawbacks-to-401k-annuities/comment-page-1/#comment-10 Robert S. Muth Fri, 04 Feb 2011 15:47:11 +0000 http://www.my401kannuity.com/drawbacks-to-401k-annuities/#comment-10 The fixed index annuity (FIA) is a good choice for the 401(k) annuity program for investors who don't like risk, because it is linked indirectly with the S&P 500 Index, but without risk to principal, all gains retained and no possibility of loss in a bear market, since it participates only in the upside of the Index. Thus, the investor never has any losses to be made up ( A 30% loss one year requires a 43% gain the next year to break even.) Since the FIA is not a security, stock brokers and bank financial advisors don't sell it. They market the high-fees, risky variable annuity, which usually decreases in value in a bear market, such as occurred in 2008, when this annuity suffered major losses, all while FIA investors didn't lose one cent. The FIA also has no up-front sales charge or annual fee, at least the ones I market, so all the client's money is invested. They can even get a 10-year FIA that provides an immediate 10% bonus on all money put into their account the first five years, plus a % of the Index -- hard to beat. They can continue to repeat that by acquiring an identical FIA every five years from separate companies for additional safety and pour as much into it during each five-year segment, all without any risk. That way, they know their money will grow without incident. The fixed index annuity (FIA) is a good choice for the 401(k) annuity program for investors who don’t like risk, because it is linked indirectly with the S&P 500 Index, but without risk to principal, all gains retained and no possibility of loss in a bear market, since it participates only in the upside of the Index. Thus, the investor never has any losses to be made up ( A 30% loss one year requires a 43% gain the next year to break even.) Since the FIA is not a security, stock brokers and bank financial advisors don’t sell it. They market the high-fees, risky variable annuity, which usually decreases in value in a bear market, such as occurred in 2008, when this annuity suffered major losses, all while FIA investors didn’t lose one cent. The FIA also has no up-front sales charge or annual fee, at least the ones I market, so all the client’s money is invested. They can even get a 10-year FIA that provides an immediate 10% bonus on all money put into their account the first five years, plus a % of the Index — hard to beat. They can continue to repeat that by acquiring an identical FIA every five years from separate companies for additional safety and pour as much into it during each five-year segment, all without any risk. That way, they know their money will grow without incident.

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