Annuities Sales Talk

Annuity salesmen often compare benefits with the investing risks that attend stocks and bonds. They mention all the hazards of securities markets and the possibilities of market loss. But annuity salesmen often overlook downsides of their offering.

Annuities do have negatives; they are not for everyone. They have an insurance factor which may not be needed. And if not required, why pay for it?

There are annuity management fees, contrary to some sales pitches and also early termination charges.

Then there are fixed or variable annuities to select, that further complicate the picture. Fixed annuities have set returns which means the buyer has no protection from any future inflation. Variable annuities tie in securities markets but not as much as you may desire.

So always be alert to the annuity sales pitch; (See the Earl J. Weinreb NewsHole® comments.)