Mac Hanna, Discusses His Approach to Helping His Clients with Financial and Retirement Literacy
During the interview, Mac discusses how most Americans already own an annuity. When we pay into Social Security over our working lives, we receive a lifetime benefit. That is an annuity. An annuity is not an investment product but is a commodity product that is a contract between the insured and the insurance carrier that provides safe, tax-deferred growth of a retirement nest egg. Annuities are designed to compete with bank certificates of deposit. Fixed annuities are considered low-risk and can provide guaranteed income. There are many types of annuities with various features & benefits. These annuities include fixed, variable, immediate, deferred & hybrid or index. Benefits can include long-term care and income riders. A fixed annuity contract includes principal protection, a lifetime income stream if chosen, and is an excellent device to leave a legacy. If these considerations are not a concern of yours, then you probably do not need an annuity. The insurance company does not keep the money if the annuitant dies. The remaining balance of the proceeds goes to the named beneficiaries.