August 22, 2017 - If you're one of the few who still watch commercials on television instead of DVR-ing your programs, you've probably seen those overtly disingenuous and obscenely expensive ads cautioning you about the evils of structured settlements and annuities.
(You know those ones where advertisers pretend they care about saving you from being duped when their pitch is really just a ploy to separate you from your money.)
There's one major problem with these ads for those in the know:
People with annuities are happier than those without annuities!
In addition to much anecdotal evidence that people receiving guaranteed future income are happier than those without, a key finding of a 2012 Towers Watson report on
"Annuities and Retirement Happiness" study revealed:
"Among retirees with similar wealth and health characteristics, those with annuitized incomes are happiest."
Happiest. Not happier.
Annuities, which have been in existence since at least the Roman Empire, have been providing income security for millennia. Linking annuity ownership to happiness is a rather recent area of focus but it stands to reason that those who live with knowledge their nest eggs will last as long as they will would feel more secure and thus happier.
" . . . people always live for ever when there is an annuity to be paid them . . . "
Sense and Sensibility
Money Can Buy Happiness
Happiness can be quite elusive and for years we were told "money can't buy happiness." While that maxim may still be generally true in the abstract, the Towers Watson study suggests that money spent on annuities may lead to greater happiness.
Various others studies have shown people receiving pension and Social Security income are generally happier than those who don't. Add to this the compounding effect that occurs by reducing one's sequence of returns risk when funds are annuitized and it's hard to imagine people passing on this proven commodity.
In over 25 years of providing structured settlement, structured attorney fee and retirement income annuity advice and services to clients across the United States, I have yet to have anyone ever call to say they regretted their decision to annuitize some of their available funds. They seem to like the fact that the money just keeps on coming.
If money can be used to buy annuities and annuities make people happy. Then money absolutely can buy happiness.
With many predicting a major stock-market correction - an event that causes most people to feel the opposite of happy - maybe now's a good time to buy your own little piece of happiness with your locked in gains.
If anyone says they hate annuities, ask them if they hate puppy dogs too. Such blanket statements ignore mountains of scholarly research and devalue the opinions of centuries of satisfied annuity owners.
Thank you for the opportunity to be of service and best wishes for continued success in your personal and professional lives,
NOTE: This newsletter is presented for educational purposes only using material freely available in the public domain and should not be construed as tax or legal advice. All rights reserved.
Wallet money image courtesy of Sira Anamwong at FreeDigitalPhotos.net
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