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Most seniors biggest fear is outliving their retirement income. The average life expectancy of people turning 65 today is age 85 and higher income earners have above average life expectancy. Many seniors don't realize that Medicare pays virtually nothing in the way of assisted living, home health care or nursing home costs (Long Term Care) which can easily cost upwards of $60,000 a year. Our philosophy is to at the very least, have a significant portion of your income in products that cannot lose principle but can earn above CD's and bonds. Many of these same products can also provide additional income in the event of a Long Term Care need. A failure to plan is planning to fail but it takes less time to make some good decisions than to plan your next vacation. Our goal is to provide you with enough money that you can keep on vacationing for many years to come.

Fixed Annuities and Equity Indexed Annuities

Why do seniors buy billions in annuities every year? 90% do so becasue they want to maximize growth, in a tax advantaged way, and eliminate downside risk to a worst case scenario of earning no new interest that year.


Fixed annuities earn a tax advantaged fixed interest rate a bit higher than a CD.


Equity Indexed Annuities generally provide a guaranteed interest rate but at the same time offer the opportunity to safely get up to 17% or more in any one year based upon an index of stocks in the S&P 500 or other indexes without having your money actually being exposed to downside risk like mutual funds, stocks or bonds have. These products only "rachet up" when there is a gain for the year in the index. They are a great way to play it safe and still have the opportunity to average 4-8% or more.


Note: We do not offer Variable Annuities, which can and do lose money.


Both Fixed and Equity Indexed products generally allow you at any time to "flip a switch" and turn your principle amount into a lifetime income stream that you cannot outlive.  About 10% of people currently flip the switch but that number is expected to increase. In fact, people who buy annuities are statistically more likely to live longer! (probably becasue they don't have to worry about outliving their income.)


Many of these products also have options that conform to the Bush Tax Cuts law encouraging people to save for Long Term Care expenses. The law allows people to have money in a tax advantaged annuity, and then if money is needed for Assisted Living or Nursing Home, or Home Health care, take money out and pay directly for LTC costs without paying tax on the income first! In my view, given the tax advantages, it is really wise to have part of your assets in such an product. If you never need LTC you never spent a dime on expensive LTC insurance!


Give us a call, Eric will help determine your goals and needs then actually sit down with you in your home or my office, to show how you might best safely grow your money and never outlive income and reduce your current & future tax bite.

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