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Raymond James offers tips on securing retirement investments

3 min read

Many who have invested money in retirement accounts have become concerned about the security of their money in today’s market place. With the recent turmoil in the stock market, many investors have seen their funds dry up and wish they had sought out different investment strategies, however, according to the investors at Raymond James, all is not lost for most with nest eggs earmarked for retirement. Recently, Buzzy Phillips of the Bokeelia Raymond James office held a free seminar which demonstrated investment strategies designed for security.

Presenting the seminar was Fixed Annuity Product manager for Raymond James, Johnna Chewning.

According to Chewning, investor fears had prompted some companies to change the way annuities are administered to totally protect client interests and presented several ways to approach annuity accounts.

“There are a number of different client options,” said Chewning. “One client may want to capture all the gain up to 9 percent, while another wants 80 percent of any gain. The difference is that if the market goes up 9 percent, the first person gets 9 percent, while the second only gets 7.2 percent. However, if the market goes up 20 percent, the first person still gets 9 percent, while the second person gets 16 percent. There are a number of different opinions and they can be mixed and matched.”

Phillips explained that even if there are a number of ‘flat’ years when the stock market is zero or negative, some clients who have invested in secured annuities will receive an income base rollup that compounds with 4 percent credits each year. Phillips provided an example.

“For instance, at the end of the first year and a $100,000 initial deposit, with zero growth, any income would be based on $104,000. With no growth for the next four years, the cash would still be at $100,000. The income account, though, would be worth $121,665.29. If an income stream started that year, it would be based on $121,665.29,” said Phillips.

Phillips also said that another difference in the newer products is that they do not have to be annuitized to get income.

“In the past, a person had to forfeit all of his or her principal in order to get regular income, but no more,” Phillips said. “And if death occurs while taking income, all balances transfer, without probate, to the beneficiaries,”

The annuity described by Phillips has also been made inflation proof.

“There is an automatic inflation protector. Once income begins, it increases 15 percent each year regardless of the market’s performance,” he said. “A $1,000 per month income this year would increase to $1,015 next year and to $1,030.23 in the third year. By the 10th year, the income would have grown to $1,160.54, more than a 16 percent increase.”

Among the 27 islands attending the seminar was Bokeelia resident Jeanne Adams.

“I have had an annuity for a long time and been very happy with it. The reason I attended the seminar was to confirm my money was in the right place and I feel confident now that it is invested where it should be,” said Adams. “At the seminar, I learned a lot more about my annuity and the presenters were very informative.”

For information about future seminars offered by Raymond James, call Buzzy Phillips at 283-8977.