Alternatives to annuities? Plenty, say advisers
05/04/2010 0 comments
By Darla Mercado Investment News May 4, 2010 2:31 pm ET
Erin Botsford , the president of The Botsford Group, had perfect timing. The dot-com bubble burst, but her clients’ income benefit rose by 5% per year. Better yet, the product had a commuting feature, which allowed clients to move 90% to 95% of their principal value to another product. Despite such success stories — and the Obama administration’s desire to let plan sponsors include the insurance products in their 401(k) menus — annuities remain a much-debated topic among advisers. Indeed, many advisers remain wary of using annuities in retirement portfolios, preferring other strategies to help boost income.
For her part, Ms. Botsford sees the value in a full array of investments. But she’s still using annuities to help meet clients’ retirement income needs. She asks clients how much money think they’ll need to cover their basic living needs and lifestyle, then funnels assets into the annuity bucket. The rest of the money is invested elsewhere, she said.
labels:investment,retirement,Annuities,
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