FREE STEAK!? Annuity Brokers Lure You In to Sell Fear and Guarantees

If you ever heard a financial services professional say, “Are you afraid of losing all of your money?”   I can tell you what is coming next.

Be wary of anyone who specifically sells fear, because you’re being set up to buy something to ease that fear.  Before you proceed any further, understand that some advisors aren’t as interested in your overall well-being as they are their own. As such, your friendly neighborhood annuity salesperson may be interested in a transaction more than a relationship, and the world of annuities is a dangerously expensive one to tread in.

A few flags:

  1. If your relationship starts with a free steak.  This may be the most expensive dinner you ever eat.
  2. Any assertion that you don’t pay him/her? An annuity is a sale for which they are paid.
  3. Check out the Advisor on BrokerCheck. If they are not licensed as a Registered Investment Advisor, this means they are NOT held to a fiduciary standard, but a suitability standard.
  4. They say they just want a “piece” of what you have.
  5. If the emcee of the event suggests that you purchase an annuity for funds you may never need. Your Roth, for example, is your most tax advantaged asset and the one you usually put your hands on last.  If your intent is to pass it to your children at death of the second surviving spouse in 20 years, the suggestion that you put it into an annuity is a red flag and a red strobe light and an alarm going off. Let someone else in the crowd pay for your dinner.

We believe that all clients deserve a fiduciary relationship with a holistic advisor who has the licenses, certifications, and the toolkit to perform to the highest standard.  If you are confused about where to start in your investment strategy and income plan, make an appointment with us or call the office to speak with one of our advisors. We’ll get you comfortable in your income plan and carefully weigh whether an annuity transaction is in your best interests.