Viking Magazine - January 2021 - 9

is purchased, which is ideal for those already in
or near retirement. Despite the subtle differences
between products, all come with the promise of
guaranteed income, meaning you can never lose
money with an annuity.
" An annuity is invested in the insurance
company's general fund that's made up of
extremely conservative investments, " explains Matt
Roedel, Sons of Norway's director of insurance
sales and operations. " When you put your money
into a fi xed annuity, you're in one of the most
conservative vehicles that offer an interest rate,
which is often much more competitive than, say,
a [certifi cate of deposit], and especially more
competitive than a savings account. "
Annuities are nothing new-in fact, they've
been around for more than 200 years in the United
States, ever since the Pennsylvania Company for
Insurance on Lives and Granting Annuities began
offering them to the general public in 1812.
" Annuities have always been part of the strategy
for savvy investors and fi scally responsible
individuals, because it's a guaranteed portion
of their portfolio that they don't have to worry
about, " says Roedel. " With all the volatility that
the pandemic has brought on, people are now
looking to annuities as an integral part of their
overall portfolio for the safety they provide. "
Annuity Popularity on the Rise
Recent data from the Secure Retirement Institute, a
division of the Life Insurance and Market Research
Association (LIMRA), supports the idea that
annuity popularity is on the rise. Though complete
sales data for 2020 wasn't available at press time,
total annuity sales reached $241.7 billion in 2019,
a 3% increase over 2018 and the highest annuity
sales recorded since 2008.
The pandemic is just one reason why more
people may be gravitating toward the stability
that annuities can provide. For today's workforce,
once-guaranteed job perks like pensions, and
Sons of Norway, 1455 West Lake Street, Minneapolis, MN, offers
fi nancial products, but not all products are available in all states.
Products issued by Sons of Norway are available to applicants who
meet membership, insurability and residency requirements.
Did You
Know?
Annuities have
been around
for more than
200 years in
the United
States. The
Pennsylvania
Company for
Insurance
on Lives and
Granting
Annuities
began
offering them
to the general
public in 1812.
government support such as social security, are
also starting to slip away, making annuities an
appealing alternative.
" I think annuities are defi nitely going to become
more and more prevalent as pensions and those
types of things disappear for most people in the
younger generation, " says John Benz, Sons of
Norway's regional sales director. " As those income
streams go away, they are going to need to be
replaced at some point, and if they're looking for
that steady stream of income, annuities are going
to continue to be more and more attractive. "
Despite its guaranteed returns, Benz stresses
that you should never tie up all the money in your
portfolio in an annuity; it's simply one piece of
the puzzle, and fi nding the ideal balance between
riskier and more secure investments depends on
each individual's fi nancial situation and goals.
" It really comes down to your risk tolerance.
If you want to have more of a guarantee that, 'I
know I will have a fi xed income stream of X,' an
annuity is great for you, " says Roedel, likening
an annuity to putting a piece of your portfolio
on autopilot. " That's where it's gaining more
attraction. I always view these as a safety net. You
can always rely on your annuity money. As long
as you follow the rules of the contract, it's always
going to be there for you to tap in retirement. "
Record-Setting Annuity Sales
Annuities are more popular than ever. Annuity sales reached a
12-year high in 2019. Here's a look at some recent numbers.
In 2019:
Total fi xed
annuity sales
reached
$139.8
billion,
up 5% from 2018
Total annuity
sales reached
$241.7
billion,
up 3%
from 2018
Fixed annuities
represented
58%
of the total
annuity
market
SOURCE: SECURE RETIREMENT INSTITUTE, A DIVISION OF LIMRA
sonsofnorway.com VIKING JANUARY 2021 9
http://www.sonsofnorway.com
Viking Magazine - January 2021

Table of Contents for the Digital Edition of Viking Magazine - January 2021
