Annuity Huckster Outbreak 🦠
March 4, 2020
As my podcast partner, fiduciary advisor Scott Dauenhauer, CFP®, predicted in our most recent podcast, the market downturn will bring out the annuity hucksters. A teacher forwarded us an email that contained the following:
"Coronavirus is Decimating Global Stock Market,"
Annuities to The Rescue…
I'm talking about a group of financial products called Fixed Index Annuities. We'll refer to these as annuities for short.
Without going into detail here about what annuities are and how they work, here are just a handful of reasons why you may wish to own these investments:
- Once you buy one of our recommended annuity products, its value can only go up!
- It's guaranteed not to lose money.
- When the stock market goes up, its value goes up with the market.
- But if the stock market drops, it holds its value.
The cost to you is very low and often cost nothing at all! These are just a few highlights to having an annuity be part of your portfolio! There will be more benefits to owning our recommended annuities, depending on your marital and financial situation. I'd be happy to discuss these benefits with you next time we meet.
Sigh. I am pretty sure this is not how Warren Buffett will be addressing the crisis in his annual letter to Berkshire Hathaway shareholders. My favorite part of this email? The Fixed Indexed Annuity "often cost (sic) nothing at all!" These are the kind of sales practices that make me ask: Where are the insurance regulators on this?
Inoculate Yourself From Equity-Indexed Annuity Sales Practices
- Read through our Education section
- Join the 403bwise Facebook Group
- Read The Myth Of “Free” No-Expense Fixed Or Equity-Indexed Annuities by Michael Kitces