Phil Cannella – Phillip Cannella Blog: Phil Cannella will tell you that one has to look under the cover to see if the product one is buying is any good. This same concept applies to insurance products as Phil Cannella very aptly puts it.
In looking at immediate annuities, Phil Cannella identified some of the key characteristics that make an immediate annuity advantageous to seniors. These are enumerated by Phil Cannella as follows:
“1) Guaranteed – Provides a steady, secure income stream for a stated time period or possibly the rest of your life. 2) Higher Returns and Payments – Disbursements are higher because insurance interest rates are generally higher than market rates and include principal as well as interest. 3) Tax Efficiency – Reduce your income tax burden since return of principal isn’t taxable.”
These points should be looked at by any Advisor when he is making a recommendation to use an immediate annuity for his client. If one or more of these characteristics is missing, the retiree will most likely be better off not having it in his or her portfolio. Phil Cannella’s Crash Proof Retirement guides consider these factors closely with every client.
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