Many people are rethinking their investment strategies and taking a more conservative approach. Adrian Zangirolami is President of Preserve First of Houston and has been steering his clients with a conservative hand for years now. While Americans have lost $15 trillion in personal wealth during this recession, Adrian’s clients haven’t lost a penny.

Adrian advises many of his clients to utilize a conservative tool called a fixed annuity. “To be conservative, you have to approach investing in a different way,” said Adrian Zangirolami on the Homework Houston radio show. He suggests that fixed annuities act more like savings accounts than investments but have more advantages than certificates of deposit. Those advantages include tax deferral, protection from law suits and no fees or commissions charged to the consumer. Fixed annuities have a fixed rate of return. “It is like a savings account run by an insurance company instead of a bank.”

Adrian Zangirolami says that Insurance companies invest more conservatively than banks. They put their money into vehicles like treasury bonds and commercial real estate. “They have a background of being extremely safe for centuries,” said Adrian.

A listener named Harvey called the Homework Houston radio show to ask what happens if an insurance company goes broke. Harvey had conflicting answers from his broker and his banker. Adrian sided with the banker who told Harvey that the deposits were insured. He said that fixed annuities are covered through the State Board of Insurance up to $100,000. Insurance companies also maintain capital surpluses equal to or more than the amount received from clients mandated by law, according to Adrian.

“Brokers don’t like fixed annuities,” said Adrian. That’s because there are no fees paid by the client. Brokers are paid a one time commission for placing an annuity by the insurance company. Many brokers prefer the ongoing fees and commissions associated with variable annuities or other investment vehicles. “Stay away from the variable annuities,” warns Adrian. “They are invested in the stock market and carry a risk of losing your capital.”

“Fixed annuities are the answer for many people who want a greater return than bank savings rates but are not comfortable with the risk of the stock market,” said Adrian. “It’s a conservative tool that will allow you to keep your money, preserve your capital, let it grow and use it for future income.”

Call Adrian Zangirolami to find out more about his conservative strategies and determine if a fixed annuity is the best way to preserve your savings. Reach Adrian at Preserve First, 832-242-7300.

Email Adrian by clicking here.