About the Author
Carlos Dias Jr.
Carlos Dias Jr. is a financial advisor, public speaker, and president of Dias Wealth, LLC. Carlos is a nationally syndicated contributor for Kiplinger and has contributed, been featured, or quoted in several publications including Forbes, MarketWatch, Bloomberg, CNBC, The Wall Street Journal, U.S. News & World Report, USA Today, and others. He’s also been interviewed on various radio and television stations. Carlos is multilingual, fluent in both Portuguese and Spanish.
Annuity Myths and Realities Myth: Annuities are complicated. Reality: Although indexed annuities have different crediting methods, with the correct anniversary dates and math formula they can be solved. Variable annuities typically use mutual fund subaccounts that can be tracked. Fixed annuities–particularly MYGAs–are the easiest to decipher since it’s an interest rate for a set period
Mistakes to Avoid with Annuities Mistake: Assuming all annuities are the same. Annuities issued by different insurance companies and all operate differently. Always read the contract or prospectus, and if you don’t understand how the contract works, don’t buy it. Mistake: No beneficiary or naming the estate as beneficiary. When no individual is named as beneficiary or the
Reasons to Purchase an Annuity You can’t lose the money you used to purchase the annuity. Besides surrender charges, principal protection means you will always walk away with your contract value no matter what. While this is true with immediate, fixed, indexed, and long-term care annuities, variable annuities don’t offer this guarantee. This is the reason
What is an income rider? An income rider is a lifetime income guarantee added to either an indexed or variable annuity. Its main function is to avoid annuitization, allowing you to have greater control and flexibility without having to be locked into a payout that never ends. Regardless, the insurance company is obligated to pay
What are the fees and expenses with annuities? Before purchasing an annuity, be aware that insurance companies might deduct fees from the contract value but vary by product. Not all annuities are created the same way so make sure to inquire about these charges or the breakdown below based on each type.
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