More Advisors Recommend Annuities

A lot of things this year have been changing in my business but not in a way I would have expected even six months ago. Since the beginning, my focus has been on providing solid information and advice to consumers and that’s not about to change. But rather than focus on finding more consumers I’ve decided to concentrate on finding other advisors who share my philosophy. It has been a positive experience and much better than debating those who don’t agree with me.

It came as no surprise that one of my new friends sent me an article that first appeared on NASDAQ titled “Why Advisors are Recommending Annuities More and More.” Several other sites republished it so apparently it’s a popular topic. It may just be a coincidence that I’ve discovered the same exact thing over the past few months. Either way, trends are changing.

I’ve heard for years that registered investment advisors don’t like annuities and more than one of them has told me it’s because an annuity takes away assets under management (AUM). Since AUM is an investment advisor’s single source of income I certainly understand. But for a group of people who adhere to a fiduciary standard it reeks of hypocrisy to ignore an entire asset class that is perfect for retirees, simply because of compensation.

So for a while now I’ve held the ignorant belief that all investment advisors operated that way but it turns out I was wrong. Over the past several weeks I’ve shown numbers that verify the efficiency of an annuity approach. The math is not debatable and more people on the professional side of the business are realizing it. The article mentions that it is 41% cheaper to use an annuity over bonds to fund retirement.  Who wouldn’t want to look at that a little more closely?

This type of information isn’t going to change Annuity Straight Talk, rather it once again reinforces the effort over all the years. It’s something that I intend to build on so I want to let everyone know what I’m adding to the website. The first advisor who signed up to partner with me lives in Washington. Together we started recording podcasts last month and the first episode will be released sometime next week. It’s going to focus on many of the same topics as this newsletter but offer a different way for people to consume the information.

The main objective of the podcast is to highlight the “both” approach to retirement. By that I mean the use of both insurance and investment products. Advisors on either side have wasted too much time arguing about the benefits of one over the other and for a long time now I’ve worked to convince everyone that a blend of both is required for optimal results. After creating several advisor contacts I’ve learned that a lot of people agree with me.

My co-host came from the investment side of the business and I from the insurance side. Both perspectives meet in the middle to form a fair analysis of all topics. In the coming weeks, we will have guests who primarily focus on investment management but also agree with the value that insurance products add in retirement.

Along with this addition is my plan to create a network of advisors who share the AST philosophy and can offer help to those who want to meet with someone locally. I’ve resisted doing this for years because I didn’t want to be responsible for a bad recommendation made by someone else. The answer to that is to only work with the highest level advisors who have years of experience and an excellent track record.

Next week I plan to introduce my co-host from Washington in the first podcast. So far I have others in California, Texas, Florida, Minnesota, Tennessee, Missouri and Oklahoma. I believe in my message and feel it’s too good not to share.  Stay tuned for my methodical introduction of this group that is going to improve my ability to provide useful and unbiased content and advice.

I’m looking forward to improving this service for the benefit of all who enjoy it. If you have any comments, suggestions or requests please let me know by leaving a comment below.


Further Readings:

Fixed Indexed Annuity Withdrawals

Indexed Annuity Crediting Methods

Uderstanding Index Annuity Fees

Last Updated on February 19, 2024 by Bryan Anderson