Avoid Running Out Of Money In Retirement


  • The truth about how long most people's retirement lasts

  • The "big 3" changes that most portfolios don't account for

  • Simple changes to maximize returns you can make today


The Great Annuity Rip-Off

Jack Waymire offers good advice when thinking about using annuities. For the most part, I do not believe annuities are a good fit for investors. Aside from being “locked-in” for a very long time (want another mortgage?), annuities do have hidden expenses, caps, surrender charges, and most important to the salesman- commissions!

A good question to ask is “Why should I lock my money up in that product for such a long time?” The fact is, every couple years, new products come out. Secondly, financial needs/desires change constantly. And third, what is the “opportunity cost” of owning an annuity? In other words, how much money will you not earn because of the annuity?

If investors are looking to control risk (often a reason for buying an annuity), risk-adjusted market portfolios may be a better option.

In the end, regardless of your investing decision, the benefits to you should be:

  • No term period
  • No surrender charges
  • No caps on return
  • No hidden expenses
  • No COMMISSIONS!

Enjoy this article. If you have any questions on how to get the above benefits, feel free to contact me at Derick@wealthabundance.com

 by Jack Waymire

The Great Annuity Rip-Off

Have you ever wondered why investment sales representatives recommend annuity products for assets that are held in IRA accounts? After all, the number one financial feature of an annuity is tax-deferred earnings. But, wait a minute; the earnings of IRA investments are already tax-deferred. So why did the rep recommend a tax-deferred product inside a tax deferred account?

Great question. A better one is who benefits when sales reps recommend annuities for IRA assets? It’s not investors who spent years accumulating the assets. They get to spend additional years paying excessive expenses for annuity features that don’t benefit them. And, if they want to sell the product, their only choices are to continue to pay high expenses for years or pay substantial penalties.

There are three winners: the sales representative, the rep’s company that permits this sales practice, and the annuity company. That’s because annuities pay some of the highest commissions in the financial services industry. Now you know why less ethical sales reps recommend annuities for IRA assets. They make more money and so do the companies that stand behind them.

How do you trust sales reps who recommend annuity investments for IRAs? You don’t, not when they blatantly put their financial interests ahead of yours.

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