"Rick - I HATE ALL ANNUITIES!!" - answered
"Rick - I've heard that annuities have high fees!" - answered
"Rick - When I die the annuity company keeps my money!!" - answered
"Rick - The annuity company only gives me some of the stock market gains, and it keeps
the rest!!" - answered
"Rick, I've never heard of annuities!" - answered
Perhaps you've heard people make statements like these, or perhaps you've personally made statements similar to the ones above.
Like so many other "one-size-fits-all" statements, the statements above are not accurate, and need more information.
"The Annuity Truth" page is here to provide that information.
Consider this - you and I have health insurance, car insurance and homeowner/renter insurance because we don't want to "be on the financial hook" if we get cancer, have a car wreck or our home burns down.
Annuities are issued by insurance companies, and people own annuities because they don't want to deal with two financial risks that every Baby Boomer must face during retirement - the possibilities of:
- losing money in the stock market, and
- running out of money, i.e. outliving their money.
People use annuities as a way to "off-load" these retirement-related risks, and "put these risks on the backs of insurance companies" instead of each retiree having to personally underwrite and "be on the financial hook" for each and every retirement-related risk.
You and I go to a doctor if we have health-related questions about a prescription or a medical procedure, and we go to our auto mechanic if we have question about our car's air conditioning or transmission.
We're all familiar with doctors, mechanics, plumbers and other professionals who are experts in a given field, and so we feel comfortable seeking their advice and opinions. But, most Baby Boomers are not familiar with annuities, and the ways annuities can be used to provide contractually guaranteed solutions for common retirement-related problems and concerns.
That's why I've started "The Annuity Truth" page.
I'm an expert on Fixed Annuities, Single Premium Immediate Annuities and Deferred Income Annuities, and knowledgeable about the many ways in which these insurance-based retirement instruments are used to a) eliminate stock market losses, b) provide guaranteed income for life for a couple or individual, and c) solve various retirement-related and legacy-related problems.
I encourage you to "A.M.A. (Ask Me Anything)" about annuities - feel free to ask your question in the box on this page. I'll answer any "A.M.A." question I receive on this page.
And, if you want to submit a question but don't want to give your name, just put "John Doe" and be watching on this page for your answer - I'll address the answer to "John Doe" or whatever name you used...
Finally - here's a link to a video on this website you might find interesting - it's an "Annuities 101" video and it gives an overview of the various types of annuities:
And now... on with the show - let's get some annuity "misunderstandings" cleared up!
August 16, 2020