Everyone loves a good practical joke – until the joker happens to be the salesperson who just sold you an annuity and your retirement ends up as his or her punch line.
To help you figure out if your advisor is a “joker, amateur-salesperson, or a true experienced financial planner”, we have put together a list of red flags to look for… (continued below video)
Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.
Be aware of these leading indicators and work with proven experts by referral whenever possible.
- Sensationalism in marketing materials (the WOW Factor!!!)
- 8% to 15% Secret Returns or Guaranteed Gains (not clarifying that this is neither interest, yield nor cash gains; rather it is an income payout percentage or a formulaic aspect of an income **guarantee)
- I Hate Annuities (advertisements that are biased to sell securities)
- Senior Alerts (to warn you about annuities when the real purpose is to sell you one!)
- Free Reports (should say get a phone call from several annuity salesmen today)
- Instant Quotes (should also say get a phone call from numerous annuity salesmen today)
- Urgency to buy (way to much selling pressure)
- Talking product without a sound basis for recommendations (no in-depth questions about your situation)
- Rely heavily on brochures (knows how to read)
- Focus on generalities that are all positive (cannot think of any reason for you not buy)
- Avoid tough questions lacking solid factual answers when asked (repeats simple benefits lacking detailed answers)
- Present a too good to be true scenario (over the top opportunity, impossible to improve on, insider information)
- Rush the sale (pressure, awkward, more pressure, expects the sale)
- Create false sense of urgency (again insider information, limited time opportunity, everyone in the know is getting in)
- Create an atmosphere of authority that is beyond questioning (makes you feel foolish or untrusting when you pose questions)
- Lacks willingness in encouraging questions ( demands trust and wants you to trust based on their implied expertise by pointing out your lack of knowledge)
- Typically focus on one or two high commission products; concealing their one size fits all mentality (Ask to talk to several clients see if they were all sold the same thing, hmmm)
- Overly friendly and personable prior to the sale (beware of those who are mostly focused on getting to know you with little focus on the planning or products)
- Unavailable and indifferent after the sale (oops… it is a bit late at this point, this is what you must avoid)
Here is an exerpt from the article – Here We Go Again: Annuities Promising 7 Percent Returns
It is too good to be true.
Understanding the **guaranteed returns takes time and perseverance. From the products I’ve analyzed, the most common **guarantee involves two annually calculated values. The first is the actual value based on the underlying investment performance. The second, or “**guaranteed value,” is increased by the predetermined return each year. If the “**guarantee” is 7 percent per year, this value would, over a 10-year period, almost double the value for which you originally bought the annuity.
However, and this is a BIG “however,” you can not take the amount accrued over a 10-year period out of the annuity in a single lump sum. You have to “annuitize” that value, meaning it must be paid out over the remaining years of your life (or some other time period). When I calculated the advertised rate of return for one annuity claiming a “7 percent” **guarantee, I found that the rate of return paid out on the annuitized payments was less than 1 percent! In total, the “**guaranteed return” was less than the current 10-year Treasury Bond yield … hardly a 7 percent **guarantee, and you paid some pretty hefty fees for the right to have it.
Another option offered by insurance companies allows investors to take a 4 to 6 percent payout every year for the rest of their lives instead of annuitizing. Investors often confuse this payout with a **guaranteed return. These are vastly different, as the former does not **guarantee the investment principal, which is still subject to investment risks. […read more]
Using OutCome Based Planning™ for Your Retirement
We practice and recommend a "Holistic - OutCome Based Planning™ process when considering annuities." This approach has the effect of balancing your overall portfolio so you can meet your retirement objectives by "first identifying the least amount of your investments or savings (if any) that should be considered for annuities." OutCome Based Planning™ analyzes and models multiple outcomes so you can clearly identify your best income and growth opportunities.
"The Annuity Guys will only call if you request help". Hence, when you are ready for specialized help we will be available."Working with an Experienced Fiduciary Financial Planner can help you Avoid a Trial & Error or Risk Based Retirement"
This type of approach does take considerably more time, effort and analysis which will show you mathematically the successful possibilities by comparing various outcomes rather than trying to sell or convince you of that "so-called one best solution." Clients frequently tell us that this process removes some of the confusion and emotion to help them objectively identify a better retirement plan; rather than just ending up with the most convincing salesperson or advisor.
When requesting help you can be assured of working with an experienced Annuity Guys' Retirement Planner who is independently insurance licensed and securities licensed as a fiduciary financial planner having access to the vast majority of annuity companies in helping you choose the best annuities using a holistic-outcome based planning approach. We consider the high quality advisor recommendations we make to our website visitors as a direct reflection back on our commitment to serve all client's with a high standard of excellence in financial planning for retirement.
Based on survey feedback on advisors from our website visitors, we eliminated about two-hundred local advisors and now only recommend a few that we consider experienced vetted Annuity Guys' Fiduciary Advisors. Many local advisors continue requesting us to recommend them as a vetted advisor. However, our reputation and future business is driven only by satisfied website visitors. So, unfortunately we've had to tell the vast majority of local advisors no, since we changed our business model four years ago. At that time we stopped trying to satisfy everyone with local advisors, we now primarily work with individuals who are comfortable using today's internet technology to their fullest advantage by working with a select group of vetted, experienced and knowledgeable Annuity Guys' Fiduciary Planners.
Selecting the Best Annuity & Retirement Income Advisor
Are you willing to work with one of our retirement and annuity advisors based on their experience and expertise as a first priority rather than being limited by a local or regional area? The good news is that technology has forever eliminated our geographical limitations and leveled the playing field for everyone! As a result of today's technological advances, all of us can now work confidently with experts in any field including personal finance. We are no longer confined by regional or local boundaries limiting our choices and ultimate success. A high quality advisor is now as close as a click or phone call away.
"There is no room for trial and error when it comes to choosing MarketFree® Annuities or a Successful Retirement Planner."
"There are no undo buttons in retirement so it is vitally important that you do it right the first time!"
We are fortunate to have a select few who we believe are truly the highest qualified advisors out of about two hundred licensed insurance agents that we eliminated. Your survey feedback is what helps us make these tough decisions. Our advisors have an independent financial practice, specializing in annuities and retirement planning, which helps ensure that you are given the best options available for your retirement planning.
"It takes an experienced expert to know how to structure annuities for income, inflation, growth, return of principal, and tax advantage."
"Anyone can sell you an annuity; however, it takes a truly qualified and experienced advisor to know how to structure them for income, inflation, growth, return of principal, and tax advantage. Typically, there is not just one that can accomplish all of these objectives. It is how an advisor structures multiple annuities in balancing your total portfolio that makes it possible to achieve your most important retirement objectives."
Why Searching for the Best Annuities on Your Own Can be so Frustrating...Almost everyone nowadays turns to the internet for answers on everything - from buying new widgets to researching just about everything under the sun; and finding the best annuity is no exception!At first, it may seem that researching will be straightforward but the more time you spend researching them, the more frustrating it can be. Why is this? First of all, it does not take long to realize that gimmicks abound - such as warnings and alerts from salesmen who just want your attention so they can sell you one or the "too good to be true" claims of 8% to 14% **guaranteed interest and of course the claim that you can get the full market upside with no downside risk! If you have done any research you have heard all of these claims in advertising which are mostly half truths and not fully explained.So how can you find the best annuities on the internet? The truth is... you can't! And what is even more frustrating is all the conflicting points of view from so called experts. There are well over 6,000 different annuities - all designed for different reasons, so is it any wonder that the deck is stacked against the average researcher or do-it-yourselfer. Add to that the fact that they pay high enough commissions to attract a plethora of both good and bad agents. This does not make annuities good or bad; they are simply a financial tool that truly benefit those who use them correctly.How can you find the best annuities for your unique situation?
- Use the internet cautiously;
- Work with a vetted and experienced specialist;
- Do not settle for that one dubious best plan. Compare multiple Outcome Based Plans to decide on the one that is truly best for you;
- Be keenly aware of scare tactics and hyperbole - avoid those advisors and websites;
- Avoid websites that are focused on rushing free reports, rates and quotes to get your contact information they are rushing you to speak with them, instead, take your time and choose someone you are more comfortable with that works on your time-table;
- Know the Five Vital Factors (listed above) that an experienced specialist must answer before helping you select the best options for your situation;
- Watch this telling video "Avoid Annuity Gimmicks, Amateurs and Charlatans"...
** Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. Annuities are not FDIC insured and it is possible to lose money.
They are insurance products that require a premium to be paid for purchase.
Annuities do not accept or receive deposits and are not to be confused with bank issued financial instruments.
During all video segments, Dick and Eric are referring to Fixed Annuities unless otherwise specified.
*Retirement Planning and annuity purchase assistance may be provided by Eric Judy or by referral to a recommended, experienced, Fiduciary Investment Advisor in helping our website visitors. Dick Van Dyke semi-retired from his Investment Advisory Practice in 2012 and now focuses on this website. He still maintains his insurance license in good standing and assists his current clients.
Our vetted and recommended Fiduciary Financial Planners are required to be properly licensed in assisting clients with their annuity and retirement planning needs. (Due diligence as a client is still always necessary when working with any advisor to check their current standing.)
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- MarketFree™ Annuity Definition: Any fixed annuity or portfolio of fixed annuities that protects principal / premium and growth by remaining market risk free.
- Market Free™ (annuities, retirements and portfolios) refer to the use of fixed insurance products with minimum guarantees that have no market risk to principal and are not investments in securities.
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