Think about what these words mean: guaranteed minimum annuitization value. It means that if the Date Lottery hits you in a way that your returns are insignificant, there will be a calculation of a factor which, although expressed in dollars and cents, should not be confused with your real money. That factor would be used in the case that you wanted to give over your entire balance to the company in return for a promise to be paid an unspecified amount monthly based on that minimum guaranteed factor.

Simply put, our strategies have so radically outperformed the guaranteed minimum returns on those contracts, notwithstanding that they typically charge a one percent fee to have the guaranteed minimum. Here's my analogy: If you have a car that gets 20 miles per gallon, would you spend money on a recurring service fee that guarantees you would never get less than 15 miles per gallon? I wouldn't.

In any market, there are those who simply follow the crowd without doing enough research and analysis to make a fully informed decision. I often wonder why so many people seem to be following the same strategies, even if they may not be the best fit for their individual needs. At our company, we believe that this approach is not always the most effective.

Let's take a step back and think about who exactly is recommending the commonly sold annuity contracts. Many of these products are heavily incentivized by commissions. Lower-commission products are often overlooked by agents for obvious reasons. And that may not be in the best interest of the consumer. Some folks prefer going with the crowd, and that's who those products are designed for. I recommend taking a more logical and analytical approach to making decisions about your life savings.

At Carleton E. Averill, II & Associates, Inc., we want what’s best for the client; and ultimately what’s best for the client is best for our company. We are willing and able to recommend lower-commission products when it’s in the best interest of our clients.