Financial Ground Rules

Money is a tool that institutions and companies use to make more money. Obviously, the less your money costs a company, the more profits the company can make with your money.  Of course they have to pay for your money, and they are constantly balancing the cost of money and their return on the money. Here are the Ground Rules:


Financial Institutions seek to acquire as much low cost capital from you as they can get;
Financial Institutions want to hold on to your money as long as possible;
Financial Institutions want to pay as low a rate of interest for your money as possible;
Financial Institutions and the products they offer are geared to keep your money as long as possible;
Financial Institutions pay you just enough money for your deposit or investment to keep you from giving it to their competitor across the street.

Is this simplistic? Yes.  Is it often discussed?  Never!

It’s important to note, too, that none of the Ground Rules above are dishonest- it’s just the way things are.

Let’s look at this another way- from your perspective.  When you borrow money from a bank, you want the lowest interest rate, the longest repayment terms, and the most flexible loan covenants you can get.

Financial institutions are no different- they’re selling you financial products in exchange for your capital, and they give you a return on your dollars.  You’re loaning them money, and they want the best possible terms for that loan. We don’t fault them for this, but we do want to raise your awareness of the methods by which things are sold.

You must know enough about the products, the companies, and the business to ask effective questions and protect yourself from the selective use of information.

To use an analogy, when you buy a home, it is wise to bring a buyer’s agent to represent your interests in a purchase until you how to ask the right questions to get all the necessary information about the property.  But after you’ve bought and sold many homes and acquire more specialized knowledge in the field, you can feel confident dealing directly with the seller’s agent and representing your own interests.

Financial products likewise require specialized knowledge to understand the nuances and ask the right questions.  But even so, most people considering an Annuity deal directly with the seller by working with a company sponsored agent, and don’t educate themselves.  Commission motivated agents want a sale and can easily put a positive spin on their favorite products.

We at Annuity Straight Talk will give you the information you need to make an informed Annuity purchase decision.  Be your own informed agent and challenge your advisor, or anyone representing a product, to answer tough questions.  Be your own trusted advisor and expert, and learn to verify what others are selling.

Annuities make great sense for people at the right time of their financial life, but too often sales commissions and conflicting interests cloud an advisor’s fiduciary duty to the customer. Now, if what your advisor is telling you checks out against the tools and techniques we give you, stick with that person.  But if not, be wary.

If you like what you read from us and are considering an annuity, please Contact Us for specific products that fit YOUR criteria and your new-found informed approval. You better believe we’ll only recommend products that fit our criteria for integrity, quality, safety, and overall intelligence.

Written By

Bryan Anderson

Bryan Anderson is a licensed insurance producer and a career finance specialist. With Mr Pulsifer, he started Annuity Straight Talk to bring his unique views on guaranteed retirement income and planning to a wide audience. He enjoys working with investors around the US from his offices in NW Montana.

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