I Hate ALL Annuities….or ALL Money Managers?
The Annuity Man
That got your attention. Huh?
I’m assuming when you read that title, you thought it was crazy and ludicrous. How could anyone hate all money managers? Some are really good. Some stink. But no rational person can say that they hate ALL money managers. Who would be swayed by such a stupid broad brush statement like that?
Let me try another bold statement on you….I HATE ALL ANNUITIES.
The fact that one statement is accepted as a universal truth, and the other one not...is utterly absurd. Saying you hate either one of these broad categories without exception makes absolutely no rational sense.
By the way, you already own the best inflation annuity on the planet. It's called Social Security, which is a lifetime income guaranteed annuity payment with a cost of living adjustment. What was that again about hating all annuities?
Unique Benefit Proposition = Monopoly
So why do people believe the ongoing ad blitz of the “I Hate Annuities” mantra? I have no clue, and consumer psychologists and business schools will be studying this insane group think for decades to come. It's an understatement to say that the ad campaign has worked. It's gone viral! Most people hate annuities, but actually have no clue why except for the fact that they keep hearing it repeated in ads and by some in the financial industry.
Saying that you hate all annuities is like saying you hate all trucks. You hate all shoes. You hate all restaurants. You hate all stocks. You hate all ETFs. You hate all money managers. Why would you believe and be swayed by an ad campaign when you don’t even trust the news? Doesn’t make sense.
Bad Reputation Well Earned
The annuity industry has earned its bad sales reputation over the years. It’s the wild wild west when it comes to some annuity sales pitches and bad chicken dinner seminar presentations. Unfortunately, it's practically impossible to regulate what agents and advisors say to their clients, even though the carriers try.
However, all of the blame doesn’t fall solely on the agent’s shoulders. The annuity industry inexplicably continues to pitch “potential return” products like variable and indexed annuities instead of focusing on the transfer of risk contractual guarantees that ONLY specific annuity types can provide.
In other words, the annuity industry has a monopoly on "lifetime income," but hasn't educated the public on this no-brainer benefit. The annuity industry is completely ignoring the lifetime income monopoly that they have. In a demographic tidal wave of retirees and pre-retirees looking for pension type income, this could go down as one of the biggest marketing blunders and missed opportunities of all time.
Contractual Guarantees Matter
GOT GUARANTEES? That should be the annuity industry's campaign, and it could make that old “Got Milk” ad look pale in comparison.
Annuities are contracts, and should be owned for their contractually guaranteed transfer of risk strategies. They were first developed in the Roman Times to provide lifetime income to the dutiful Roman Soldiers and their families, and annuities are the ONLY product type on the planet that will guarantee a lifetime income stream regardless of how long you live.
That’s the unique benefit proposition that ONLY annuities have. Why the annuity industry doesn’t pound this message into the head of the 10,000 baby boomers that retire every day, I’ll never know.
Do you hate your Social Security payments? Do you hate your pension? Do you hate guaranteed income? Of course not! You love that monthly income from Social Security. You enjoy seeing that pension payment hit your bank account every month. By the way, both of those are annuity structures!
So...do you hate ALL money managers? That's preposterous and absolutely ridiculous. Right?
Do you still hate ALL annuities? Pause and think this time before answering.