Make promises, keep promises

Promises.

We make promises many times in our lives to spouses, kids, friends, and others. A promise is a future debt owed and, simply put, an obligation. Too often in life, we are unable to keep all of ours, and they become unpaid debts.

We also live our financial lives depending on promises. The bank promises to pay us interest and to keep our savings safe. The security the car warranty guarantees us when we buy a new car. It goes on and on.

Wall Street made promises to all of us.

They promised to provide us with products that had value and an agreed-upon level of safety. They have failed in that promise. The reason is straightforward; they are greedy and place their own needs and goals over the people who trusted them and their products. The blame is very narrow on the Wall Street category, and responsibility lies with only a handful. Most people associated with these firms are hard-working taxpayers, just like everyone else. The greed factor changes the market, but the greedy are those at the top and control the boards of directors. Profits are the motivator, and greed is the gasoline. They are combining greed and lack of oversight, creating this monster that is now consuming all of us.

Back to promises.

Many people keep promises, and many companies also keep their promises. Consider the enormous obligation an insurance company shoulders when they accept a customer’s money in return for a future guarantee. Are those promises kept? Yes, they are, and the question is why they are kept. The answer is straightforward, conservatism and oversight. No industry is more regulated than the insurance industry; from federal oversight to state rules and regulations, the industry is transparent, and the information is available for all to see.

Annuities are the backbone of many people’s retirement and are promises to pay. Annuities work because they are guaranteed and backed with “real” safe dollars. The insurance company accepts the responsibility of prudent management and protects future obligations to its annuitants.

In the course of American history, including the Civil War, the Great Depression, and our current times, no one has ever lost a penny in an annuity. No one has ever missed a retirement check with funds from an annuity. No beneficiary has ever been denied their benefits with funds in an annuity.

Annuities are safe, and they are guaranteed. They are dependable, and they are reliable. They are the backbone of our financial well-being and our future security. Wall Street and those who have abused the system can never say that.

Safety and security is our promise, a promise guaranteed to be kept.

Like all critical matters, always consider legal and tax consequences. Consult an expert before making any final decision.