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Annuity FAQ #20 What is The Difference Between A Variable Annuity And A Fixed Index Annuity?

IQ Wealth Management | Steve Jurich | Scottsdale Financial Planner
22 subscribers
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What is The Difference Between A Variable Annuity And A Fixed Index Annuity? What's the difference between a variable annuity and a fixed index annuity? The biggest big difference is a variable annuity is always going to look pretty good as the market is rising and when people make a decision to buy a variable annuity they maybe have a comfort level with mutual funds because they've been investing in look at a variable annuity because they've started to say to themselves hey maybe I should look into an annuity what the heck the first one they might look at if they walk into a bank lobby or talk to a broker or a securities firm they may offer one or two different variable annuities and they know that it's going to be an easy sale for them because they're going to see the same mutual funds inside the variable annuity that they see just in their mutual fund accounts. The problem though is when you are making an annuity decision is it all about maki …...more
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Annuity FAQ #20 What is The Difference Between A Variable Annuity And A Fixed Index Annuity?
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291Views
2017Oct 27
What is The Difference Between A Variable Annuity And A Fixed Index Annuity? What's the difference between a variable annuity and a fixed index annuity? The biggest big difference is a variable annuity is always going to look pretty good as the market is rising and when people make a decision to buy a variable annuity they maybe have a comfort level with mutual funds because they've been investing in look at a variable annuity because they've started to say to themselves hey maybe I should look into an annuity what the heck the first one they might look at if they walk into a bank lobby or talk to a broker or a securities firm they may offer one or two different variable annuities and they know that it's going to be an easy sale for them because they're going to see the same mutual funds inside the variable annuity that they see just in their mutual fund accounts. The problem though is when you are making an annuity decision is it all about making more money or is it more about preserving money. Preserving death benefit perhaps but also creating more income and having less stress. The goal is to have more money coming in than going out from now on. No matter what that's when an annuity is designed to do. Do you want to pay three to four percent a year in fees? with a variable annuity you will you'll have your mortality and expense charge that's one to one and a half percent. Then you'll have an income rider charge that'll be one to one and a half percent. We're up to three. Then there's also the sub-account management piece for all those mutual funds that's another percent. That's four have twelve thousand dollars a year in fees think about that in ten years you've paid a hundred and twenty thousand dollars. So the person who hates annuities and thinks you should too he and I agree right their variable annuity fixed index annuity the next generation sum with uncap strategy there's zero management and there are several plans now that have zero writer fees. So your no fee upfront, no annual fee and you have all the benefits you're looking for fixed index annuity preserves capital pays you your income and gives you less stress and less worry about the markets. It's up to you, but in our view and in the view of our clients for the purpose of what an annuity is designed to do you're not ever going to make money with a variable annuity if you're gonna be with the fixed index you'll do well you're not going to make a million overnight perhaps but you're going to keep your money safe and we think that with the purpose of what an annuity is designed to do. But the fixed indexed annuity typically is a better choice. ----------------------------------------------- Scottsdale Financial Planner - IQ Wealth subscribe to our channel https://goo.gl/8E73gS https://www.iqwealthmanagement.com/ ---------------------------------------------- ❇️ Through Steady Withdrawals Of 5% To 10% Per Year ❇️ Through An "Annuitization" (Converting Your Lump Sum To A Stream Of Lifetime Payments Backed By The Reserves Of The Company) ❇️ Cashing Out: Simply As You Would With A Bank Account Or Mutual Fund. --------------------------------------------- Appointment Scheduling: (480)628-5154 Barb Email: Steve@IQWealthGroup.com Barb@IQWealthManagement.com ---------------------------------------------- Watch our most recent video https://goo.gl/4uxLzT We’re conveniently located in Scottsdale near the 101 and Via De Ventura, close to the Gainey Ranch Hyatt Regency Mailing address: IQ Wealth Group 7702 E Doubletree Ranch Road Suite 300 Scottsdale, AZ 85258 Local: PHX/Scottsdale (480) 902-3333 Full service, securities, life insurance, annuities Local: LA (310) 707-7047 Insurance and annuities only Toll Free: (888) 310-1776 Fax: (866) 872-1700 ~-~~-~~~-~~-~ Please watch: "FAQ 1 I Really Don T Know Much About Annuities Are There Different Types"    • FAQ 1  I Really Don't Know Much About...   ~-~~-~~~-~~-~ Watch our next FAQ video    • FAQ 23I've Heard You Talk About Secur...  

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IQ Wealth Management | Steve Jurich | Scottsdale Financial Planner

22 subscribers