There’s a wide world of financial strategies to choose from, so we know how hard it can be to navigate what’s truth & what’s just a tall tale the internet sells. With over 20 years of experience, Ty Young has dedicated his life to understanding the good, the best, & the “not so good for you” nuances of annuities.
Here you’ll find Annuity Myths that we’ve heard from our clients, and how the truth can actually lead you down a path to greater financial health.
Myth #1:
The stock market has a longer and better track record than annuities.
The Truth:
With the right investment strategy, annuities have outperformed the market (S&P) over the last 20 years.
Let’s take a look at how the right financial strategy can work for you:
If you had $300,000 in the stock market and the market dropped 50%, you would now have $150,000. If the market increases 50% the next year, would you get back to $300,000? Of course not. You would only have $225,000. Often, people confuse maximum gains in one year with positive performance overtime. Not realizing that with a major market loss, they must play catch up for years to come.
On the other hand, what would happen if your money was placed in a Fixed Indexed Annuity in the same scenario? After a 50% loss in the market, your money is completely protected and your balance will remain at $300,000. If you held one of our “50% participation rate accounts,” then you would make 50% of the stock market’s return the next year, or 25%. That would bring your account balance to $375,000.
So, with a traditional portfolio of stocks, your balance after two years is $225,000. But with your Ty J. Young Wealth Management account, your balance is $375,000 over the same period of time. That’s a significant difference. As our CEO often says, “It’s easier to climb your financial mountain if you never have to dig yourself out of a financial hole.”
The Ty J. Young Investment Strategy outperforms the stock market over the last twenty years because you go forward with your money, never backwards. Up, never down. Over time, this positions your account to grow with the stock market, but stay protected when the market experiences a correction.
Myth #2:
Annuities Causes Tax Problems
The Truth:
Annuities are tax smart.
Annuities provide tax-deferred growth until you retire and are ready to withdraw funds.
Myth #3:
All Annuities have ridiculous fees
The Truth:
The best annuities have no annual fees.
Not all annuities are created equally. At Ty J. Young Wealth Management, we specialize in investment strategies using the very best annuities. These annuities maximize annual returns with no annual fees.
Myth #4:
Annuities don’t grow
The Truth:
Over time, there’s no better way to achieve growth without market risk.
The proper annuity, used correctly, is a tremendous tool to achieve retirement goals. Historically, our clients have participated in 6% – 8% returns. Our clients enjoy this reasonable rate of return because our Financial Strategists are specialists in getting the maximum gains in our clients’ accounts.
Which of these myths hit home?
No matter which myth you chose: you’re not alone. These myths mislead millions of people and keep them from achieving financial health. That’s why we suggest working with a specialist like Ty J. Young Wealth Management when choosing your annuity.
Ready to learn more? Talk with one of our Financial Strategists today to find your custom approach.