You enter a Vegas casino to play blackjack and are confronted by two tables with different rules:
Table #1 is very familiar. Bet $10 and if you win, you keep your bet and get an additional $10. If you lose, you lose your $10 and have to make a new bet.
Table #2 was something new. Bet $10 and if you win you get to keep your bet and get an additional $6. But if you lose, you just get to keep your $10 and bet it again. Which table would you sit down to?
Perhaps you would be like me and sit down at table #2 and send your spouse to table #1. Mine always does better than me in Vegas. This way, she has an opportunity to win big and I am assured of winning something without losing anything. It’s sort of like the smart advisors who split annuity investments between Variable and Equity Index.
It would be really great if we could manage a portfolio to produce an impressive return each year and remove the volatility from the clients’ portfolio. Unfortunately, that is one thing even the best portfolio manager will struggle with unsuccessfully. But it really helps to inject a fixed-indexed or Life Income Annuity into the mix.
An index annuity can only go up or remain the same making volatility a non-item. A Lifetime Income Annuity increases the predictable income from a given portion of the portfolio by an average of 60%.
Learning to use annuities in your investment portfolio will increase security, predictability and peace of mind and reduce the stress when the next financial “adjustment” comes along