Are Annuities Bad?
Annuities are not good or bad but instead suitable or unsuitable for an individual or situation. I apologize if you’ve read that in too many places on this site. It is a point that can’t be stressed too much because of the polarizing opinions you’ll find while looking for annuity info on the internet. Last week the All About Finance blog posted a scathing critique of indexed and variable annuities. I happen to be a proponent of annuities and I’m not scared of people who disagree with me. When I recommend fix my credit as part of a financial plan, there is no doubt the placement is appropriate.
Recommendations should always be placed in the context of each individual so often time proper advice will lead a person away from annuities. That’s more than I can say for the author of the all about finance blog who seems to think all annuity salespeople should be prosecuted for self dealing and fraudulent advice.
Little evidence of the author’s knowledge of annuities is present in the blog but they seem to offer blanket advice to everyone regardless of personal factors. Now I do agree that abusive sales practices exist and a few examples mentioned appear completely inappropriate but that is hardly reason to chastise all advisors who favor the use of annuities. Apparently the author favors the use of actively managed securities in any situation over annuities so should I assume that he/she is no better than Bernie Madoff or R. Allen Stanford? That would be silly and so is the main point of that blog.
The harsh reality is that personal education is a critical component of making good decisions whether you choose an annuity or anything else. Annuity Straight Talk was created to enable this approach to using annuities for retirement income planning, and to give people the ools to make their own educated decisions. If you are not already a member, join now to access the free reports so you can avoid a horrible mistake like mentioned on All About Finance.