Income can refer to cash flow derived from a variety of sources, including personal earnings, investment earnings, businesses or even real estate. These forms of income are generally referred to as earned income. There are also sources of unearned income, particularly when discussing investments. Dividends, capital gains and interest are common examples of unearned income.
Dealing with Complexity
Understanding the vast number of different annuity product types and features can be mind numbingly complex for both consumers and financial advisors.
Insurance companies take in huge amounts of money from policyholders. Part of the purpose of an insurance company is to invest the massive amount of policyholder funds.
Much of the money is invested in bonds or fixed income, some can be invested in stocks or equities, and portions can be invested in real estate, hedge funds, venture capital, etc.
Fee Only Advisor
There are some outstanding financial planning tools and some very poor, misleading tools.
Your financial future is a bit like your health—it is complex and multi-faceted. As in healthcare, the tools used for financial diagnosis and the practitioner who interprets the results need to be up to the task.
