If there was ever a "home run" article on Stan The Annuity Man, this is it. Jane Wollman Rusoff, ThinkAdvisor.com did the annuity world a favor by publishing this piece. "Why the annuity truth beats the annuity dream" should be the mantra for the entire annuity industry.
As I always say, you own an annuity for what it WILL DO, not what it might do. You make your decision solely on the contractual guarantees of the policy. Unfortunately, the annuity industry does not follow my lead on this, and the consumer is the loser because of it.
In my opinion, annuities are contracts, not investments. Because of that brutal fact, you should fully understand that contract before buying it. The current annuity sales environment with product types like Fixed Index Annuities (FIAs) too often involves a "too good to be true" sales pitch that many annuity buyers fall prey to. When it comes to annuities, if it sounds too good to be true … it is. NO EXCEPTIONS!
Another one of my famous sayings is, "If you buy the annuity dream, you are going to actually own the contractual reality." People need to ignore hypothetical, theoretical, projected, back-tested, hopeful unicorns chasing the butterflies return scenarios pitched by agents just trying to sell something. This article is a very stan-approved synopsis of why that is important to consumers and the army of agents and advisors selling annuities to the demographic tidal wave of baby boomers looking to transfer risk and own contractual guarantees.