Introducing “Stan the Annuity Man”
Dan and I like what this man says about annuities!
Because of our negative experiences with surrender fees, putry returns, misleading and conflict of interest sales pitches from insurance agents, we have been critical of large insurance company annuities. Stan the Annuity Man says the same thing that we have been preaching for years.
Excerpts on an Interview with Stan the Annuity Man (Entire Interview link is below)
Interviewer: What’s the biggest mistake advisors make in selling annuities?
Stan the Annuity Man: They look at them as investments. They’re not investments. An annuity is a contractually guaranteed transfer-of-risk strategy, and a noncorrelated asset.
Interviewer: You maintain that the annuity industry doesn’t regulate carriers’ advertising sales messages. What’s the result?
Stan the Annuity Man: They can pretty much promise anything. So, for example, too many people think they’ll get market growth on an indexed annuity. They’re just not going to. If that product existed, [Federal Reserve chair] Janet Yellen would be buying it for the country. But when you tell the uninformed consumer, “I can get you market-type growth and no losses,” they’re going to sign up, right? Clients should not be deluded. It isn’t a security! (Steve and Dan’s note: Stan the Annuity Man made an important point. Insurance products are NOT Genuine INVESTMENTS! Read our previous post about knowing the difference between insurance and investments).
Interviewer: Why, then, are variable annuities the most popular of all?
Stan the Annuity Man: The only reason that complex products, like the variable annuity and the indexed annuity, are sold in such [high] volume is that they pay the highest commissions.
Interviewer: In what way will it change the way annuities are sold?
Stan the Annuity Man: They will eventually be available direct from the carrier, like stocks, bonds and ETFs. Probably within five years, most agents will be cut out of the picture. Baby boomers will want choices and to make their own decisions. They won’t want to interact with an agent.
For the entire interview: ‘Stan the Annuity Man’: Avenging Advocate for Annuity Truth
Also read the White Coat Investors article. Even Medical Doctors are sold these turkey products. Don’t Mix Insurance and Investing.
Before you leave to read the above articles, get our book! It’s FREE!
We believe Stan the Annuity Man would be proud of our book: Fighting Powerful Interests: Educators Challenge Tax-sheltered Annuities and Win!”
Written for my Los Angeles Unified School District (LAUSD) colleagues, my PDF formatted Free book is about fighting annuities sales at LAUSD. The politics over teachers’ 403(b) money is astonishing and few in authority talk about it publically. For example, the California hideous insurance code demands this monopoly–the insurance industry easily crashed two legislative proposals to reform this code. But there is great news! Read how a small group of educators and one district administrator challenged the power elite and skirted around the heavy-handed politics and ended up with an Award Winning, low-cost 457(b) plan instead. It’s a terrific “David vs. Goliath” story with a similar happy ending and a positive model for school districts across California and the nation. After reading this book, you will have to confidence to manage your own money because you will have the confidence to find genuine investments and/or professional assistance that looks our for your best interests.
