Are Annuities a Rip-Off?
The Annuity Man
Annuities are the most controversial financial product on the planet. The annuity industry is to blame for a fractured and inconsistent branding message. Selling agents and advisors are to blame with their "too good to be true" high-pressured sales pitches. And some consumers are to blame for believing the "I hate annuities" mantra that's being pushed by money managers and financial advisors with anti-annuity agendas.
So a question I get way too often is, "Are Annuities a Rip-Off.?" A better question would be "Are Contracts a Rip-Off?" Annuities are contracts. Don't believe me, then buy one. You will receive a policy (i.e. contract) in the mail. What is sometimes a rip-off are how annuities are sold by unqualified salespeople just trying to make a commission.
Are you Social Security payments a rip-off? Of course not. Are your pension payments a rip-off? That would be a NO as well. Spoiler alert, both your Social Security payments and pension payments are annuities.
As a consumer, the key with annuities is to own them for what they WILL DO (i.e. contractual guarantees), not what they might do. Never make a decision to buy an annuity based on a hypothetical, theoretical, projected, back-tested, hopeful agent return scenario. Buy the steak, not the sizzle....and you will find that annuities are NOT a rip-off.
Contact Stan The Annuity Man for quotes on all annuity types with all annuity carriers using Stan's proprietary annuity calculators. You can also receive his 6 Annuity Owner's Manuals under no cost or obligation.