Скачать или смотреть Is Buying an Annuity a Mistake? 5 Red Flags to Watch For

Too often, buying an annuity is a mistake. It doesn't have to be. Watching for 5 simple, easy to identify red flags can help you avoid a costly mistake.

People buy annuities looking for a steady income stream and reduced risk. Unfortunately, too often, they get substandard products.

Bridget Sullivan Mermel CFP(R) CPA and John Scherer CFP(R) talk about how to sort it out.

When do they make sense?
Most people don’t need and shouldn’t have them.
People who are worried about running out of money in retirement.
What if I live until 110? I have longevity in my family.
It’s not for people with very little money
People who have a lot of money
Income standpoint / cash flow in retirement
Unfortunately, it’s not who buys these—people in their 40s and 50s. They buy them because their sold lower investment risk.
They’re not generally good for that!
One of the big things is that—when you look at them, look at the number of moving parts. All annuities have mortality and expense charge. What if there is mutual fund charge? Upside protection? Payout charge? Longevity charge? How do you know what you have? Just like investments—if you don’t know what you’re buying and you can’t explain what you’re buying to someone, you shouldn’t buy it. You should be able to understand all of your moving parts.
The golden question to ask—what is commission and how much money do you make on this? 4 to 8% commission for agent is high. Guaranteed payments sound good, but make sure you understand how the agent and insurance company is making money.
1 or 2 percent is more reasonable.
What is the surrender charge? How long does it last?
Vanguard offers annuities with no commission to agents. They don’t have surrender charges.
Buying an annuity in an IRA—generally not a great idea.
When do you buy them? Immediately after a spouse dies isn’t a great time to buy any big financial instrument.
There are fee-only consultant that help people analyze annuities. They will give you independent advice on the annuities.

00:00 Hello!
01:35 When annuities make sense
03:30 One big thing to look at to evaluate annuity
05:05 Second big thing to look at to protect yourself
07:45 Third red flag
08:35 Fourth caution
09:00 Fifth red flag Here's Bridget's firm website: www.sullivanmermel.com

John's firm website: www.trinfin.com
Bridget's firm website: www.sullivanmermel.com

For advisors around the US:
www.acplanners.org

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View the video transcript with the following link:
https://www.sullivanmermel.com/post/i...