Wednesday, September 12, 2012

More on "Deferred Income Fixed Indexed Annuities"

My last blog post was about Allstate's new Deferred Income Fixed Indexed Annuity product. Though I was critical of the video's presentation, I should clarify that this may still be a suitable financial product for some retirees. Often retirement income is more about avoiding the loss of capital than maximizing returns. What got my goat about the video was that the accompanying PR announcement explained the video as a simple and easy-to-understand description of the product. I found the video to be anything but with the convoluted explanation and no indication about how the fees would cause the contract value to deviate from the hypothetical guaranteed benefit base. I still don't know about fees as it isn't particularly convenient for me to call a sales agent on the phone during normal US business hours, being that I'm on the opposite side of the world. They don't seem to otherwise provide the information on the Internet.

Since then, Professor David Littell of the American College shared a link with me for a video interview he did with Curtis Cloke of the Thrive Income Distribution Solutions company. This video runs 40 minutes and provides an excellent explanation about how these sorts of deferred income fixed indexed annuities actually work. This video will be included as an educational resource in the new Retirement Income Certified Professional (RICP) designation now offered by the American College.

The embedded video "How Are Deferred Variable Annuities with Guaranteed Benefit Riders Used in Retirement Planning?" is below. Though the discussion is somewhat advanced and geared toward advisors, I think this is a much better educational video and it can be understood by sophisticated consumers as well.


  1. Wade,

    The video is apparently no longer available at the link you give above. Do you have an alternate?

    1. You are right.

      I've sent a request for an updated link and will provide it when and if I can.

  2. Bill, I've got a new link for the video and I was also able to embed it now. Please see this blog post again. Wade

  3. Its a fantastic video. Thank you very much.

  4. Annuities are not designed to bring in maximum profit. It's a safe investment. The lower the risk the lower the chance of a big return. It's just fine for many retirees.
    Ron |

  5. It is good to know that this is still a good option for many retirees. I wish they would teach about this kind of stuff in high school or college. People would definitely be more capable of saving and planning for their individual retirements.