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Point-Counter Point Debates
Question:
Annuities are a controversial product in the financial services industry today; especially variable equity annuities. They are often touted as a solution to the retirement income question for medical professionals. Many sales consultants and financial advisors advocate their use; while others absolutely detest and abhor them. And, it has been said that annuities are often sold, but rarely purchased.
For example, insurance fee components are high, sales-loads are great, and most annuities are deferred, but few are annuitized. Some are even sold within qualified retirement plans by fear mongering salesmen/women.
And so, what is your opinion on this controversial subject and ever-evolving contentious financial product? Please omit the default “it depends on the client and situation” answer-of-choice; and clearly opine pro or con; and why.
Assessment
Parsing aside; will annuities remain a bane, or finally morph into a more transparent and efficient product in the future? And, what are some alternatives for physician investors and healthcare executives? Cogent, thoughtful and experienced repliers are appreciated; sales slogans and aphorisms are not. Please opine?
Conclusion
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Filed under: "Ask-an-Advisor", Financial Planning, Investing, Point-Counter Point |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Neutral Opinion
Variable annuities are neither good nor bad; rather it is how they are used.
For example, sub accounts must be monitored quarterly. If the client is in an annuity that is falling, my rule-of-thumb is to get out if down 10% or more. And, it makes sense to follow several that you are not invested in, so that one or two are “warming-up in the bullpen” when those in the field falter.
So, quarterly reviews, diversification and my 10% down-and-out rule are guiding principles to a good investment made even better by current tax savings.
Tom Anthony
Georgia
770.536.2742
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Are Doctors and other Investors are Finally catching on to Variable Annuity Rip-Offs?
If an insurance agent offers you a can’t-lose, tax-deferred investment, it ought to be a slam dunk, right? Of course not! It never is.
http://www.physiciansmoneydigest.net/your-money/doing-the-math-variable-annuities
For one thing, agents receive rich commissions for selling these, so you must be wary of high-pressure salesmanship. So, its doctor beware!
Stanford
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FINRA Warns and Informs About Variable Annuities
Variable annuities are commonly promoted as a useful addition to a retirement nest egg. While they can be an appropriate investment in the right circumstances, you should be aware of their restrictive features, understand that substantial taxes and charges may apply, and guard against fear-inducing sales tactics.
http://www.finra.org/investors/protectyourself/investoralerts/annuitiesandinsurance/p005976
The Financial Industry Regulatory Authority (FINRA) recently published an investor alert to help educate investors about these confusing products and suggest questions to ask when considering the purchase of an annuity.
Curtiss Smith
http://www.NetWorthAdvice.com
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