Annuities are beige. But sometimes, beige isn't such a bad thing.

My past week has been filled with requests for single premium annuity quotes, which leads me to believe that more and more of you are considering annuities for your clients. They are a great solution for guaranteed income. People are effectively buying a defined benefit pension plan when they acquire an annuity. I don’t think it’s the place for all of someone’s savings but for the expenses that retirees will definitely have, annuities can be a valuable component of a financial plan. A possible use for an annuity is to replace the fixed income portion of a retiree’s investment portfolio. Given today’s yields on fixed income funds, I suspect the annuity will win. In this situation, the client still has the same equity exposure and liquidity plus a guaranteed cash flow. Another possible use is to replace GICs with annuities. For older clients, the yield on an annuity will always beat a GIC. Plus, annuities, in general, avoid probate, have the potential for creditor protection and the quick payment of death benefits. Further to this, non-registered prescribed annuities have level taxation. Remember, if a client needs guaranteed income right away, an annuity will always provide more income than any of the GMWBs in the marketplace. Give me a call if you’d like an annuity quote or to learn more about annuities in general. At our next Money Monday, October 30th, IA, Canada Life and Sun Life will be presenting. I hope you can make it or join us at one of our Kingston, Montreal, Halifax, or St. John PD Days this month. Take care, Scott Edgington Director of Wealth Qualified Financial Services 416 786 4140