Annuity Purchases and Request are on the Rise at AnnuitiesHub.com Driven by Fears of Plunging Down the Fiscal Cliff
AnnuitiesHub.com has seen a rise in purchases and requests as the fiscal cliff looms. Retirees are looking for a safe haven in tax deferred annuities as a solution to curb their fears of income losses.
(PRWEB) December 26, 2012
The looming fiscal cliff represents a perfect storm of changes in our country: the expiration of the Bush income tax cuts at the end of 2012, the scheduled increases in income and estate taxes in 2013 and many federal spending cuts scheduled to occur in 2013.
Many economists fear that if we go over the fiscal cliff, meaning lawmakers fail to reach an agreement to avoid the automatic changes, then the US economy will fall back into a recession. If that is to occur, economists will then argue over how capable the US economy is and its ability to "snap back" when an agreement is reached. If an agreement does not happen it's possible the damage will be too severe to recover, essentially leading into a longer and deeper recession.
This does not suggest that the fiscal cliff represents some sort of automatic trigger to go out and purchase an annuity. However, many retirees are growing tired of the uncertainty of the stock market and relying upon it for their lifetime income, therefore the safety, security and guarantees of an annuity are worth looking into, especially now.
According to a recent survey by Jefferson National of Registered Independent Advisors (RIAs) in December 2012, “75% say their clients are anxious about the impact of the looming fiscal cliff, and their biggest concerns are rising taxes. These same advisors say their clients are demanding tax deferral as a solution to this challenge, topping other potential financial approaches. And advisors agree with their clients, as 85% say that a low-cost tax-deferred investing solution would indeed benefit clients in a time of rising taxes.”
Robert Wheat, CEO of AnnuitiesHub.com states “visitor traffic to research annuities has increased over 500% in December and retirees requesting to speak to an annuity expert has increased over 200%. Essentially, advisors are having the busiest December ever due to retirees' fears of plunging over the fiscal cliff.”
The Federal Reserve has committed to keeping interest rates artificially low until the unemployment rate reaches 6.5% or lower. What this means for savers is that interest rates on no risk assets like CD's and US Treasuries will likely remain extremely low. An annuity has some advantages and features that fare well in this type of environment and can be the answer to a tax deferred product solution to protect retirement income.
About Annuities Hub:
Annuities Hub is a Dallas, Texas based company. It provides education and research on annuities, wealth management, and retirement planning. Annuities Hub helps retirees connect with their ideal financial expert. Visit AnnuitiesHub.com for a complimentary Annuity Rates Comparison Report.
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