Mr. FIA-X: Don't Fall For These Indexed Annuity Sales Tactics
About Fun With Annuities Episode #126
Mr. FIA-X is arguably the most popular and most requested Fun With Annuities podcast guest in our roster of financial superstars. He wears a mask because the truth and facts he provides on the Fixed Index Annuity (FIA) category can be very controversial. He peels the onion back one factual layer at a time so that the consumer can understand exactly how FIAs work and if they fit into their specific portfolio. The bottom line, he is a treasure to the annuity industry, especially to the annuity consumer.
We dove off the cliff early in the podcast to address the ads you see on the internet that promote 10%+ “market upside with no downside” returns with FIAs. This drives Mr. FIA-X crazy because he knows this is fraudulent on every front, and the consumer is being taken advantage of by the misleading sales pitch. He pointed out that these ads are nothing more than “lead mills” where the company running the ad sells your name for $150 to $300 to numerous agents and “financial advisors.” Then the persistent phone calls happen and seem to be never-ending. Every lead is a nail in their world, and they are the FIA hammer. Whether you need an FIA or not, they will try and sell you one. Sociopathic selling is at its worst.
Then we talked about some multi-level marketing companies now selling annuities and breaking telemarketing laws by not complying with the “Do Not Call” list regulations. This will be the mother of all class-action lawsuits, and I hope it takes these organizations down permanently. Annuities are not one-size-fits-all and should be promoted like that. This is when the government needs to step in with a very heavy regulatory hand.
Mr. FIA-X then explained Income Riders and the associated costs so that people could understand how they work. He also broke down how FIA index option gains are calculated and how if you don’t die on the contract anniversary date…most carriers will not credit the index gain. Wow! That one even blew Stan The Annuity Man away. So any back-tested return scenarios should have a 0% return that last year when you are going to die. So much for those unicorns chasing and catching those butterflies; not going to happen, Chester!
We closed out the podcast with me asking Mr. FIA-X what questions he would ask if he were a consumer being pitched an indexed annuity. Hearing his take on that is worth listening to this podcast for sure. His mic-drop moment at the end of the recording warned consumers of what’s coming in the next few months in the indexed annuity space. Just remember this, if the sale pitch or product sounds too good to be true…it is. No exceptions. As they say in Las Vegas, where The Annuity Man home office is located…don’t be the sucker at the table. And as Stan The Annuity Man always says, if you can’t explain it to a 9-year-old, don’t buy it. No offense to 9-year-olds. Enjoy the podcast!
"I'm a big believer that annuities are about safety, security, and eventually to establish an income that your clients cannot outlive." — Mr. FIA-X
Who is Mr. FIA-X, and why is he hiding his identity?
He's now retired from the fixed index annuity business but was there from its inception. He has been at the secret annuity carrier meetings and knows the confidential information. Mr. FIA-X revealed never shared before details that he knew the consumer needed to know. But, they were facts that FIA carriers really don't want consumers to know. That's why we have to protect his identity.
PS- Once again…don't email me and ask me to reveal who it is or confirm your guess. Never going to happen!
In this episode, The Annuity Man® and Mr. FIA-X discuss:
- Don’t sign up for “free” stuff
- Upfront bonuses are not real money
- What good advisors do
- There’s never an urgency to buy an annuity
- If you’re signing up for a free report, a free gift, or free whatever, then expect that you have to give up your personal information and therefore your most valuable asset too which is time. They will sell you as leads to companies who will not stop calling you until they get their value for their money.
- Don’t fall for upfront bonuses! That bonus will go to your income value, which essentially means that it’s not real money. Also, they’ll charge a fee so that they can invade your principal, which will be taken out of your real money.
- Annuities are great, but they’re not a cure-all, solve-all- problems product. Not everybody needs an annuity. Not everybody needs a stock market. Everyone has different unique needs. A good advisor will first find out what your need is.
- Don’t sign something that you can’t understand or the agent can’t explain. Especially avoid signing if the agent tries to rush you into doing it. There’s never an urgency to buy an annuity, the only urgency is for you to understand fully.
Fun With Annuities® Podcast is hosted by America’s Annuity Agent®, Stan The Annuity Man®, and a Celebrity Co-Host. Hear facts with no sales pitches from the top independent agent in the country, licensed in all 50 states. Stan and his guests dive deep into topics such as annuities, finance, retirement, and so much more. It’s fun learning the facts and seeing if they’ll fit your personal retirement lifestyle. Thanks for being here!