Why Do People Hate Annuities?

Special Guests:

• Stan Haithcock, aka “Stan the Annuity Man”
• Eric Lai, President, Archvest Wealth Advisors

The reputation of annuities as “guaranteed” income-generators for retirees has been shredded by countless horror stories of hidden fees, sky-high commissions and dishonest sales practices. We hear one such story from Lucian, a 37-year old investor who fell for a salesperson’s promises of “lifetime payments” and “money-doubling potential” and sank $400,000 of his life savings into a high-cost, low-return equity-indexed annuity. Fee-only fiduciary advisor Eric Lau, who is trying to help Lucian cancel his contract, advises that anyone considering purchasing any annuity should have an attorney review any contract and/or consult with an objective investment professional to discuss other retirement-income options.

Resources

• Objective, factual insights on annuities from “Stan the Annuity Man” Haithcock Link
• The Society for Annuity Facts & Education, Inc Link
• Annuity Consumer Alert from the National Association of Insurance Commissioners Link

NextAvenue articles on annuities (and other retirement income options)

• Cautions about Buying Annuities for Retirement (Episode recap) Link
• What Could Help Americans Manage Their Retirement Money Link