The ONLY Urgency When Buying an Annuity
The Annuity Man
If you are a living, breathing adult with investments and a bank account, there is a 99% chance that some advisor or agent is going to try and sell you a variable or indexed annuity. If you fall into that 1% that will never hear that too good to be true sales pitch, consider yourself fortunate.
Never too good to be true…no exceptions!
That doesn’t mean variable or indexed annuities are bad products or that I hate those strategies. Not at all. They both work in specific (not all) situations that solve for a specific goal.
I just projectile vomit when I hear some of the sales pitches that are pushing these “too good to be true” annuity solutions (i.e. contracts). Some annuity TV & Radio ads make me wonder if there is any industry oversight at all. Worse are the stories I hear about the persistent emails, calls, and impromptu home visits once you are in those high pressure sales loops. I call this practice “submission selling”…which means that the salesperson is going to pound you into submission until you buy…and falsely claim that it is urgent to make your decision right now before this “have your cake and eat it too” opportunity goes away.
My advice is to buy the steak, not the sizzle. Always own an annuity for what it "Will Do" (i.e. the contractual guarantees), not what it might do. Too many annuity sales pitches are based on back-tested, hypothetical, theoretical, and hopeful agent return scenarios that are not guaranteed. Anyone can "juice the numbers" and cherry pick back tested time frames. Don't buy that dream pitch, because you are going to own the contractual reality.
Annuity urgency doesn’t exist
Let me be very clear with this next statement…There is NEVER an urgency to buy any contract…so there’s NEVER an urgency to buy an annuity…regardless of the type. Period. End of story. Game over. No exceptions.
The only urgency is for you (the consumer) to fully understand what (i.e. the contract) you are buying. That “urgency to educate” has to be on your terms and on your time frame. Never forget that if you ever find yourself being pressured into making an annuity buying decision, you probably need to walk away from what's being pitched.
I always tell my clients and every person that I talk to about annuities, if you can't easily explain what you are buying to a 9 year old...then don't buy it. No offense to 9 year olds.
Shiny things for dreamers
Upfront bonuses, monopoly money income rider high percentages, “market upside with no downside” promises, and free long-term care sales pitch packages should be red flags to all that have their “thinking caps” on. Note to self, always have that thinking cap on! In addition, always remember that annuity companies have the big buildings for a reason. They never give anything away! There are no philanthropists running annuity companies. So if you are being pitched an "upfront bonus" for buying an annuity, that is just part of the overall contractual guarantee. It's not free money!
Unfortunately, the facts show that both low IQ & high IQ people fall for what I call “unicorns chasing the butterfies” sales pitches. You want to believe it’s true. You want to believe that you can take a pill that make you skinny again without exercising. You want to believe that it only takes 8 minutes to get cut-up ab muscles. You want to believe that there is a perfect financial product out there. Buzz kill….that product does not exist.
Hopefully, you are smarter than that. As they say in Vegas, when you don’t know who the “sucker” is at the poker table…it’s you. Don’t be that annuity rube. Do your homework and fully educate yourself on the annuity strategy you are considering. That’s the only urgency when it comes to annuities.