Like syndicated columnists everywhere, Humberto Cruz’s occupational hazard is to suffer through reader backlash, no matter what position he takes.
In his personal finance column this week, Cruz attempts to preempt angry reader e-mails by throwing cool reason on a topic that stirs hot passions – annuities. No, that’s not a typo. Apparently passion and annuities can be related.
Just when you thought Americans’ enthusiasm for retirement income planning was only slightly greater than converting to the Metric System (see “Retirement Readiness Rating” brief by the Employee Benefit Research Institute), along comes Cruz’s assertion that there is indeed a lively little universe of people who actually think deeply about how to plan ahead and not run out of money in retirement.
Any debate on retirement planning is a step in the right direction. Cruz’s courage to stir the debate and temper it with some good sense is laudable, especially on the role of annuities:
“No annuity is intrinsically ‘good’ or ‘bad’,” he writes. “Any type can be appropriate if you understand how it works and the annuity fits into your overall financial plan. Any type can be inappropriate if you don’t understand it or are not aware of potential drawbacks.” Read Cruz’s full column here.
Learn more about the role annuities can play in retirement income planning. Check out www.axa-equitable.com and the The Insured Retirement Institute
Annuities are long-term financial products designed for retirement purposes. In essence, annuities are contractual agreements in which payment(s) are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. There are contract limitations and fees and charges associated with annuities, which include, but are not limited to, mortality and expense risk charges, sales and surrender charges, administrative fees, and charges for optional benefits. A financial professional can provide cost information and complete details. All guarantees provided by annuities are based on the claims-paying ability of the issuing life insurance company.
AXA Equitable Life Insurance Company (NY, NY). GE-59732(12/10
