Viking Magazine - March 2013 - 27

Variable-You can choose
to put your money into
mutual funds and your periodic
payments are linked to how
well your investments do in
the market.
The annuity market has gone
through considerable change
in recent years, says Kevin
Meehan, a fi nancial planner
with Summit Wealth Advisors
in Itasca, Ill. In the 1990s,
the variable annuity gained
popularity as consumers tried
to take advantage of gains
in the stock market while
maintaining level income. " It
was perceived by consumers
who buy these products
as, 'I'm having my
cake and eating it
too,' since they
could benefi t
from the upside
of the markets,
yet keep a baseline
revenue
stream. "
But
with the
turmoil
in the
markets
3
out the window and some
companies stopped offering
variable annuities. However,
Meehan thinks the annuity
market has a bright future as
fewer Americans can count
on a pension and are looking
for a safe, predictable way to
supplement their income.
The most traditional,
premium immediate annuity,
the benefi t payout
can be set up for the life
of the annuitant and/
or at least 10 years to
the benefi ciary. With a
joint life single premium
immediate annuity, you
can name your spouse or
benefi ciary to continue
to get the regular payments
after your death.
60%
have less
than $1,000
in total savings
and investments
around 2008,
there was massive
upheaval in the industry.
Assumptions were thrown
conservative type of annuity is the
" fi xed " variety. For many middleincome
Americans, this provides
a steady income baseline, much
like a pension, says Meehan.
To decide if an annuity is
right for you, Meehan suggests
reviewing your needs,
wants, and
dreams. If
you already
have a
of American
workers have
less than
$25,000 in total
savings and
investments
substantial
income
from
Social
Security
and pension
payments,
additional regular
payments from an annuity
may not be needed.
However, if you think these
sources will not provide an
adequate income in the future,
an annuity can be a way to
supplement these payments.
Schedule an appointment with your Sons of Norway Financial
Benefi ts Counselor to discuss annuities and other fi nancial needs. Visit
www.sonsofnorway.com to fi nd an FBC in your area.
SOURCE: EMPLOYEE BENEFIT RESEARCH INSTITUTE
Greg Ragan, FBC
Roscoe, Illinois
➝ Enjoys spending time
with his family
➝ Enjoys boating, golf
and travel
When determining if
an annuity is right for
a client, I ask them questions
to get a clearer picture
of their investment
risk tolerance, goals and
needs. An annuity is generally
designed for retirement.
As a rule of thumb,
a person age 65 should
have about 65 percent of
their money in fi xed assets,
such as certifi cates of
deposit, bonds, savings or
fi xed annuities. The other
35 percent should be in
equities or stocks.
Sons of Norway only
sells fi xed interest
annuities. The interest
rates are guaranteed for
the fi rst year, as well as a
minimum anual lifetime
guarantee. With a single
One of the best features
of our annuities are
lifetime guarantees. You
can never lose your principal
and you are always
guaranteed some interest
each year. A lot of people
who were negatively affected
by the stock market
and don't want to lose
their money fi nd annuities
very attractive. And annuities
have other advantages:
they are not subject to
probate and interest grows
tax-deferred.
Clients are allowed to
withdraw fi ve to ten
percent of their money
annually without penalty
during the penalty period.
After the penalty period
of fi ve or eight years, they
can withdraw 100 percent
penalty free. If a person
needs access to more,
there are other payout
options available. We
generally recommend that
no more than 40 percent
of your investments be
in an annuity plan. All
annuities allow the client
to name a benefi ciary to
avoid probate.
sonsofnorway.com VIKING MARCH 2013 27
http://www.sonsofnorway.com http://www.sonsofnorway.com
Viking Magazine - March 2013

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