MAJOR MISCONCEPTION ABOUT ANNUITIES: “When you die all the money left in your annuity goes to the insurance company not your heirs”. THIS IS NOT TRUE. If you purchase a life only SPIA with no period certain then this will happen. A life only SPIA will allow for the highest income stream based on your life expectancy, but upon death the remainder will go to the insurance carrier. This only applies to a SPIA with a life only payout. SPIA – Single Premium Immediate Annuity: SPIAs offer an immediate income stream for the period that you desire i.e., 2,3,4,5,6,7,8,9,10 years, life, life with guaranteed certain of 5, 10, 20 years. When deciding to use a SPIA for income you essentially annuitize your money. In most cases you do not have access to your principal in emergencies, only your income stream. You are also locked in to an interest rate between 1% and 3% depending on when you purchased your SPIA. However with fixed annuities this is not the case.The diversification of your money is one of the most important concepts to understand within your financial plan. These types of contracts are for the money you cannot afford to lose. This information is provided to help give you a brief understanding of how Guaranteed Lifetime Income Benefits work.  This may be a great replacement or compliment to your existing CD, bond, IRA, 401k and even a portion of your Savings.

Annuities are the only way to guarantee a lifetime income stream, but there are many different annuities to choose from:
(Some would say "the lifetime income benefits available on fixed annuities today work much like a pension, tax deferred and create a lifetime income guarantee) pension definition: A regular payment made during a person's retirement from an investment fund to which that person has contributed...

Some Fixed and Fixed Index Annuities offer more flexibility, more choices and more growth potential in how and when you decide to distribute your income in retirement with their lifetime income riders. These riders are purchased as an addition to the fixed or fixed index annuity product. There is usually a fee associated with these types of riders and the way the fee is calculated will vary from contract to contract.

What Guaranteed Income Really Means
Annuity riders can guarantee income for life, but just how much income can they generate?  These annuity riders will help you to determine when to retire based on a guaranteed income.

Annuities are great for tax free accumulation without stock market risk. However, given low interest rates, the interest rates on IA’s (Index Annuities) are not very exciting. Fortunately, an added income rider to an annuity contract (also called a guaranteed withdrawal benefit rider or GWBR or a lifetime income benefit rider or LIBR) can be a godsend when it comes to guaranteeing great income that will last if the client lives to 87, 97 or 127. The problem is that producers must do an honest job of explaining what these riders do – and what they do not do.To illustrate, consider the following discussion while discussing retirement planning and longevity:

Thought: “I have an annuity and I am making 6.5% annually compounded on my money, guaranteed!”
Fact: “NO, you are not making a guaranteed annual rate of 6.5% on your money. In this market that is impossible. The insurance company is only making 2-3% on the money you give them, how can they pay you 6.5% every year?
Thought: “YES, I am! My agent told me that as long as I defer taking out the money I am guaranteed to make 6.5% every year?”
Fact: “NO, the financial advisor who told you that was either misleading you or more likely just doesn't understand how the product works. What you purchased was a rider to an annuity contract. The rider, which you pay for at a rate of about $650.00-$950.00 per $100,000 of annuity premium, guarantees that you will make 6.5% per year credited not to your money in the annuity (i.e:, money that you can take out in a lump sum or that will go to your beneficiaries). Rather, the rider says that the insurance company will credit 6.5% to a separate income-only account from which you can only use to take out annual income for life (no matter how long you live). Not only that, but the insurance company tells you what percentage of the account you can take out. The amount credited to your money in the annuity (what they call the contract value) is more like 3-4 percent if the market goes up and nothing if the market goes down, so you cannot lose your principal due to market losses”
Thought: “So why exactly isn't that considered 6.5% on my money”?
Answer: “Let me give you an example”:

Example: Jim Brown, 50 year old man has $100,000 in an old 401k (This is not all of Jim's Money)
Jims Goals with this portion of money:

  • He Does not want his 401k at risk any longer.
  • He Wants to retire at 70.
  • He Needs his 401k to do what it was originally intended to do, guarantee to supplement his future retirement income.

Let’s explore a hypothetical case to see how a guaranteed Lifetime Income benefit can insure a future retirement income that Jim can not outlive. Create your own plan here.

After completing a fact finding analysis of Jim's financial situation and goals, Jim's Safe Money Advisor recommends taking the $100,000 of his 401k savings to purchase an annuity with a Guaranteed Lifetime Income Benefit.


Hypothetical return; for illustration purposes only. Not a prediction of future performance. There is a rider fee that will come out of the cash value to provide the income benefit. This fee will continue to be taken against the contract value as long as the contract is in force or the rider is terminated. *Income account value can only be taken as income to the initial contract owner. All Guaranteed Lifetime Income Riders are different. Please consult with a trusted Safe Money Representative before choosing these types of products. 

Urgent! Very Important Things to consider before choosing the right annuity with a lifetime income rider.

1. What is the Fee?
2. How is the fee calculated? Cash Value Calcultaion or Income Value Calculation?
3. Is the fee calculated based on the income account value or the accumulation / cash value?

*If the fee is calculated on the income account value... then the fee will increase every year while in deferral, based on the income account value growth percentage. Therefore depleting the accumulation value/ cash value much faster. The lifetime income you receive from these types of contracts may illustrate a higher lifetime income payout, but the value of the contract that will pass on to your beneficiaries will be drastically less. Also, If there is an emergency and you need access to more money, the additional money you need may no longer be available due to the way the riders fee was calculated.

There are income riders that offer 5%, 6%, 7%, 8% and even 10% guaranteed income account growth annually. Some grow interest compounding and some are simple interest. Some have payout percentages based on age and others are a flat percentage no matter what is the age of the contract owner. Some have cash value fees ranging from .0050% to 1.5% annually and some do not have any internal fees. But they all provide a guaranteed lifetime income based on the financial strength of the issuing insurance company. Not all Income riders are the same. and our Safe Money Advisors promote “Individual Empowerment Through Education”. If you feel a guaranteed lifetime income rider may be right for your situation; consult with a trusted Safe Money Advisor or contact us so that we can help point you in the right direction. Approved Experts

Safe Money Approved


Gregory Bodoh

Warrenton Virginia | 540-347-2125

Karen Geiger

Akron Ohio | 330-644-8770

Michael Marrone

Marlton New Jersey | 856-988-6618

Andrew Heese

Arvada Colorado | 303-523-3631

John Cornish III

Glendale California | 951-704-6400

Mary Wilkinson

Fredericksburg Texas | 830-914-6049

Todd Kiry

Hammonton New Jersey | 856-816-6525  

Jim Chilton

San Diego California | 800-689-4851

Bill Emery

Dunnellon Florida | 800-465-7354

Mark Gilbertson

Eau Claire Wisconsin | 715-832-6201

John McFarlane

South Abington Pennsylvania | 570-586-5578 # 1

Safe Money Resource Services

We are the most qualified and trusted independent financial network of "Safe Money Experts" in America. We have selling agreements with almost every top-rated independent insurance carrier that offers life insurance and annuities. Because of this, we can offer the most non-biased advice. We have had the opportunity to see this industry from every angle: as financial advisors, consumers, consultants and currently as wealth planners to the consumer, and financial coaches to the independent financial service professionals around the country. We have had countless opportunities to see the difference that great financial advice can create.
Safe Money Resource and educate the general public, as well as the independent financial service professionals, on Safe Money Alternatives to Banks, CD's, Mutual Funds, Stocks, Bonds, etc. We provide back-office support and product advice to our independent network of financial professionals in order to create the best-possible guaranteed retirement plan for their clients. is an educational resource that has been created to assist you in seeing through the confusion called the financial industry. Unfortunately, we have witnessed what can happen when people receive mediocre financial guidance: costly, unnecessary mistakes that put clients' goals and dreams at risk and in jeopardy.
Inspired by our experiences, we have built an independent network of top financial professionals around the country to help you get back to the basics and see through the smoke screen of retirement planning. Through our Safe Money Approved qualification process, we introduce very well-qualified financial advisors to successful families that they can serve. The products discussed on this website have most likely never been explained to your existing broker. That is likely because he or she has limited knowledge and or lacks the freedom to look out for your best interest first. Our mission is to help create a plan for you that is guaranteed to meet your expectations. If you are in need of a financial plan with an emphasis on principal protection, a hedge against inflation, and a guaranteed lifetime income you cannot outlive, I would encourage you to take a close look at the information provided here and ask us anything on your mind! Phone calls are always free, 100% confidential, and there is never an annoying sales pitch. Just good, quality advice to help point you in the right direction. 877-GROW-SAFE (476-9723)

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