How Structured Annuities Work

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What Are Structured Annuities?

Structured annuities, also known as buffered annuities, provide a balanced investment approach. They offer growth potential while protecting against downside risk. These insurance products are linked to market indices like the S&P 500, allowing you to participate in market gains while minimizing losses.

Key Features of Structured Annuities

  1. Market Participation: Benefit from market upswings without directly investing in the market. Your returns are tied to the performance of an index but with a cap on the maximum gain you can achieve.
  2. Downside Protection: Enjoy peace of mind with a built-in buffer or floor. A buffer protects against a certain percentage of losses, while a floor limits the maximum loss, providing a safety net during market downturns.
  3. Defined Terms: Structured annuities come with set terms, usually between 3 to 10 years. You can reinvest or withdraw your funds at the end of each term.

Benefits of Structured Annuities

  • Risk Management: Structured annuities help manage investment risk by offering market exposure with downside protection.
  • Customization: Choose terms and features that match your risk tolerance and financial goals, ensuring a tailored investment strategy.
  • Tax Deferral: Enjoy tax-deferred growth, allowing your investments to compound without immediate tax liabilities.

Considerations When Choosing Structured Annuities

  • Fees: Be mindful of potential fees that can impact your overall returns.
  • Cap Limits: Be aware that caps on returns can limit your growth potential during strong market performance.
  • Complexity: Understanding the nuances of structured annuities can be challenging. It’s important to carefully consider all terms and features.
What Is A Structured Annuity

How We Can Help

At The Annuity Expert, we understand that planning for retirement and managing investments can be overwhelming. Our mission is to simplify this process by offering personalized, expert advice tailored to your specific needs.

The Core Problem We Solve

The main problem many face is finding a secure investment that balances growth potential with risk management. Market volatility can be stressful, especially for those nearing retirement who cannot afford significant losses. The symptoms of this problem include anxiety over market downturns, confusion about investment options, and fear of not having enough funds for a comfortable retirement.

Our Expertise

With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we have the expertise to guide you through the complexities of structured annuities. We believe in finding the best solutions at the lowest costs, ensuring you get the most value from your investments.

Structured Annuity

What We Recommend

Step 1: Initial Consultation

  • What Happens: We begin with a comprehensive consultation to understand your financial goals, risk tolerance, and retirement plans.
  • Main Benefit: This allows us to tailor our advice and recommendations specifically to your needs, ensuring a personalized strategy.

Step 2: Customized Plan Development

  • What Happens: Based on our initial consultation, we develop a customized investment plan that includes structured annuities designed to meet your goals.
  • Main Benefit: You receive a clear, actionable plan that balances growth potential with risk management, giving you confidence in your financial future.

Step 3: Ongoing Support and Management

  • What Happens: We provide continuous support and management of your investments, adjusting your strategy as needed to stay aligned with your goals.
  • Main Benefit: Enjoy peace of mind knowing experts actively manage your investments, allowing you to focus on other important aspects of your life.

Features and Benefits

  • Personalized Advice: Tailored investment strategies that meet your unique needs.
  • Market Expertise: Leverage our deep understanding of market trends to optimize your returns.
  • Ongoing Support: Continuous management and adjustments to keep your investments on track.

Addressing Common Objections

  • Objection: “Structured annuities are too complex.”
    • Counter: We simplify the process, explaining each step in clear, understandable terms.
  • Objection: “I’m worried about fees.”
    • Counter: We provide transparent information about all costs, ensuring you understand the value you’re receiving.

Ignoring the benefits of structured annuities can leave you vulnerable to market volatility, potentially compromising your retirement plans. By working with us, you’ll secure a balanced investment strategy that provides growth and protection.

Experience the peace of mind that comes from knowing your financial future is in expert hands. Feel confident, secure, and prepared for whatever comes next.

Contact us today for free advice or a quote, and take the first step toward a secure financial future.

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Get help or a quote from a licensed financial professional. This service is free of charge.

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What fees are associated with structured annuities?

Structured annuities come with various fees, such as administrative fees, surrender charges, mortality and expense risk charges, and management fees. The fees associated with any mainly structured annuity will depend on your chosen product and the provider offering it. Understanding all these fees before investing in a structured annuity is essential.

Do structured annuities pay for the rest of your life?

Yes, some structured annuities do offer lifetime payments. These are lifetime income annuities and will pay you a regular income for the rest of your life. However, not all structured annuities have this option, so you must check with your chosen provider before making an investment decision.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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