Why Do Financial Advisors Hate Annuities?
Hey, Stan The Annuity Man here, America's annuity agent, licensed in all 50 states, number one educator out here, and I do sell annuities if they're appropriate and suitable. If you want to connect with us, visit our website to learn about annuities and use our proprietary annuity calculators. The question you have, which is a question that should be asked more often, is why do financial advisors hate annuities? You didn't say why do all, but why do too many of them hate annuities? That's a good question. Now, I'm going to answer it with, I think I know, and I'm going to go into the details in a second but hang in there with me because at the end of this, I'm going to tell you how to get some books that I have written for free and how to connect with us to get a quote.
Now, see, I can talk about this. I can talk about why financial advisors hate annuities because before Stan The Annuity Man existed, I know that's a horrific thought. I mean, the world is a better place with me here, right? Just nod your head. I used to be a financial advisor at the major firms, the stock and bond firms, back in the day. I'm kind of older. I know I don't look older, but I am older. We were called stockbrokers, and I worked for some of the biggest firms on the street. And back then, and even today, the companies, the firms don't want their advisors' pushing annuities because you can't charge an annual fee on most annuities, which is kind of where the industry is from the financial advisor standpoint, and that's fine. There are fee-only advisors and fee-based advisors, and they're both charging fees.
Army of Advisors
They don't want their army of advisors pushing Immediate Annuities, Deferred Income Annuities, QLACs, and Qualified Longevity Annuity Contracts. Why? You can't charge a fee on those, and those are irrevocable lifetime income products, which means that money in the firm's eyes is gone. So, I don't blame the financial advisors for mouthing and mimicking the "I hate annuities" mantra because, number one, they're kind of told that a little bit. Number two, they really don't have a good education on what annuities do. And the reason I know that for a fact is when I was at those firms, I had no clue. I mean, seriously, I really wasn't up to speed on the annuity side because you're getting hit by all kinds of wholesalers. The world is your oyster when you're a financial advisor. You can sell anything: mutual funds, ETFs, bonds, REITs, and annuities, but most of them focus on the growth side of the portfolio, which is fine, but that doesn't give them license to comment on things they don't know about.
Lifetime Income Stream
And what they need to learn about are the myriad of ways that annuities can complement a portfolio. I think that's tragic because with 10,000 baby boomers retiring every single day, a lot of people, and that might be you, right? You're looking for guarantees with at least a part of your portfolio. And this is a fact. The only product on the planet that can provide a lifetime income stream you can never outlive is an annuity, a Single Premium Immediate Annuity, a Deferred Income Annuity, a Qualified Longevity Annuity Contract, or a lifetime benefit Income Rider. Those products will pay you regardless of how long you live.
The Fiduciary Standard
Now, isn't that a benefit? Yeah, nod your head. It is a benefit. Suppose I'm a financial advisor and acting in a fiduciary role, meaning I have to put your interest ahead of mine, which is what, listen. In that case, there shouldn't be a fiduciary standard.
We all should be acting like fiduciaries, right? That's common sense. But with annuities being the only product that gives that benefit proposition of a lifetime income stream, shouldn't it be something financial advisors talk about, at least without saying, "I hate all annuities."
Annuities Are Contracts
The other thing that financial advisors do mistakenly is they compare annuities regardless of the type of investments. And see, I don't think they are. Annuities are contracts. If you don't believe it, buy one; you'll get a contract in the mail. They're not investments. Now, many of them are sold as investments, but in my opinion, if you want true market growth, you don't buy annuities. You buy annuities for the transfer of risk aspect. Most people are looking at them now for lifetime income stream guarantees. And with that being said, all you financial advisors out there who are listening, you need to get a little bit more educated.
You can download all my books for free, and for you out there that is getting told by your financial advisor that you should never look at an annuity or you should never have an annuity in an IRA, which is a joke, or all annuities are bad, or all annuities are expensive, filter that. Filter that just like you filter the news. When you watch the news on the cable channels, filter it, there's an agenda behind it. I'm not saying it's a bad one, but there is an agenda behind it. I do work with a lot of fee-only planners out there. I mean, some of the biggest ones in the country use Stan The Annuity Man for any quotes that they need or advice if some of their clients have bought an annuity, they really don't know what they own. I work with many of them across the country, and many fee-only and fee-based, but primarily fee-only advisors work with me because they know annuities have a role.
Book a Call With Me
They know in some cases with their clients that income flooring using an annuity makes sense. So, I do work with those people, and if you have an advisor that you think needs to be updated with the annuities, do me a favor. Tell them to call me, tell them to interact with me, and I can work in conjunction with them to compliment the portfolio they put together for you and manage for you, and maybe add an annuity in there that will help them. Perhaps they can buy it themselves, or I will have to do it for them. Whatever's in your best interest, that's what we'll do. But if you're running into some headwind with your advisor on annuities, let's open up the conversation because they can get my books for free.
I think they're looking bad by saying carte blanche that they hate annuities. I think it's a bad reflection on them because if I said to you, "I hate all stocks," what would you think? You wouldn't be too thrilled about that. Or "I hate all mutual funds." That would make no sense to you. The same thing applies to annuities. I think it's time to start educating the advisors a little bit, as well as consumers.
All right, so you hung in there with me. There is a video that I want you to check out after reading this blog: What Is A Pension Annuity And How Does It Work? Because a lot of people right now are looking to create their own personal pension. So, this video explains how to do that, how to go about shopping for it, and how to structure the payment, etc.
It might be something your financial advisor should see as well. So, with that, go to my website. There's a myriad of things you can learn more about annuities. I have a podcast. We do multiple YouTube videos every single week. So please click the subscribe button. We can get you quotes, and we can get you anything you need because why? I'm Stan The Annuity Man, America's annuity agent, licensed in all 50 states and here to help you if needed.
Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.