Fidelity Investments Annuity Marketing in 2024

After 21 years of self learning I’ve been able to share a lot of information that makes retirement easier for a lot of people. Conflicting points of view are difficult for nearly everyone so you have to rely on yourself to decide what’s best. Over the years, much of what I’ve done has felt like a battle to get the truth out there. Much of the pushback came from the investment management industry because there is money involved. Slowly, however, several companies have come around to offer a more well-rounded retirement approach that includes annuities, as it should.

I covered this in one of the first podcasts of 2024 but it has taken on a different tone. This was pointed out to me by an existing client who keeps an eye on a lot of the information I post. He’s still working and has a 401(k) managed by Fidelity, who sends monthly newsletters to all participants. For the first time he has seen, there is actually a pitch for annuities within a recent monthly newsletter. I have only heard of them recommending annuities in certain situations but now they are really trying to get ahead of it.

I only wrote about this in the past because several people mentioned to me that they had first heard about annuities from Fidelity. These were mostly high-net worth individuals and the annuity recommendation was suggested as a competitive difference between other asset managers. Others who had spent years with managed money at Fidelity commented that they had never heard of the option from their internal advisor at the company. It’s easy to understand why this might be the case. If an annuity helps keep or gain more assets under management, Fidelity will suggest it. If the money has been sitting there for years then why would Fidelity want to change it?

Investment companies have always had some basic information about annuities available but it has never been widely distributed, at least not to my knowledge. This may be speculation and I’m ok with it being labeled that way. But it’s hard to ignore the fact that spreading positive annuity information is a departure from normal operations. This is big news and I’m happy to see it because it’s the right thing to do. The less we fight each other the more effectively we can help you. I’m not the either/or guy, rather the both/and type. If you guys see more of the both/and approach it’s going to be a lot easier to plan well for retirement. It also justifies my 21 years of effort.

We’ll take a deeper look at the page in the podcast but I’ll explain a few highlights here. It’s a really nice basic look at all types of annuity options. The subtitle starts it off by saying “Learn how they (annuities) can help retirement savers and income seekers.” That covers just about everyone so I can’t complain. The “Key Takeaways” from the webpage are shown in a screenshot below.

Boost retirement savings, manage market volatility, never outlive your money, decrease the risk of inflation etc., I couldn’t have said it better myself.

In the past, my experience suggested that Fidelity mostly just offered single premium immediate annuities, deferred income annuities, and variable annuities. From the information on this page they have managed to also include MYGAs and guaranteed lifetime withdrawal benefits. Again, they likely always had access to these products but advertising to a large part of their audience is a whole different story. I hate to say that this signifies a consensus in financial services but it’s a step in the right direction.

Remember that this came as an email. I looked at all the other titles to see if any of the information crossed over. One subtitle says “Got maturing CDs or Bonds? Here’s how to consider deploying those proceeds.” By clicking the link I found some pretty solid advice. Roll it into new CDs or bonds, or for retirees who want a more hands-off approach, an annuity is a good option as well. Good financial advisors and especially fiduciaries can’t truly help retirees if they ignore an entire industry that exists mostly to solve retirement problems. Hats off to Fidelity on this one!

Now I don’t mean to be critical because I support this effort, but there are limitations to what Fidelity can provide. In some cases you’ll get the best while in others there are much more competitive options that they don’t have. I covered this in my second episode on the subject, Fidelity’s Annuity Recommendation. The reason for this is simple: available products were delivered from a boardroom decision and based on solid relationships between Fidelity and certain Insurance companies. I’ve sold contracts from more than a dozen companies this year and I’ll do more if it means getting you the best deal. I am independent and major firms are captive to corporate red tape.

Perhaps a partnership between AST and a major investment firm will happen one day… haha! It’s not likely but either way we are coming closer to a time when there’s not so much fighting. When a major firm steps out like this then I have to wonder why many of the independent investment managers continue to hold out. I’ll let that be what it is and continue to refine and update my information as needed. I appreciate all of you for helping me get here and am available to address your concerns any time. Go ahead and make an appointment at the top right corner if you want to chat.

All my best,

Bryan

Continue Reading:

Fidelity – Investment Companies Now Recommend Annuities

Fidelity Annuity Recommendation

Surrendering of Allianz Products

Podcast Episode: Fidelity Investments Annuity Marketing

Download the Podcast Episode: Fidelity Investments Annuity Marketing on Apple Podcasts

Last Updated on August 20, 2024 by Bryan Anderson