Wednesday, February 10, 2010
Annuities the official retirement vehicle of the Obama administration?
Financial Universities and the political arena are beginning to see the Green. The Green in annuities: The long-term income value, safety, and the guarantees of streams of income for life relieve the fear of outliving one’s money.
Samuel Johnson said, “It is better to live rich than to die rich.” Guaranteed streams of income for life can help us live a richer life without fear of running out of money.
Is it possible? Could annuities become the official retirement vehicle of the Obama administration?
The wake-up call: Corporate, State, and Federal Government pension plans are under funded by $Trillions with Social Security and Medicare $88 Trillion in the red, www.usdebtclock.org, stimulus and bail-out packages beyond compression, have served as a national wake-up call as 77Billion baby boomers witness the demise of 401Kplans.
It is an urgent call for safe, secure, retirement plans. Where can we turn? To annuities.
Financial Universities and economists around the globe had just concluded that Income Annuities can provide an income for life at a cost as much as 40% less than a Stock, Bond, and Cash mix while annuity companies were introducing superior Life Time Income Benefit Riders.
Now here’s a big helping hand
A recent House bill proposes waiving 50 percent of the taxes on the first $10,000 in annuity payouts each year…now that’s great news.
Much of the news media have not caught on to this:
The Life Time Income Benefit Riders can increase the income value by 15% to 18% in one year and guarantee and income stream for life without giving up control of the cash accumulation in the event of death before receiving a full distribution. And, the assurances of an income for life should the cash account go bust.
Now here’s interesting news
In January 2010 the Obama’s Administration Middle Class Task Force included annuities as a means to provide Americans a better opportunity for a more secure retirement.
Now as the Obama administration starts to recognize annuities as a retirement income bailout here’s more shocking news.
PBS Newshour 2/09/2010 Toyota announces plant closings. And, more alarming news; as Greece, Portugal, and Spain plunge further into recession, the concern of the Euro increases the awareness that to survive the financial tsunami we must make provisions for ourselves individually.
Perhaps, after-all, the greatest safeguard for IRAs, 401Ks, and TSAs, is Fixed Annuities with Premium Bonuses and Life Time Income Benefit Riders backed by statutory cash reserves.