Thursday, July 17, 2008

Annuities: What the Heck Did I Buy?

Annuities, as you may or may not know are almost never bought directly as a result of a consumer waking up and thinking they want an annuity. They are typically sold to people by annuity or insurance agents.

Just yesterday I received a phone call from a gentleman who mentioned that he never thought about an annuity but was thinking about an Aviva Annuity because a high pressure salesman came by and convinced him it was a good idea.

Unfortunately, this is how many annuities are sold. They are forced upon a consumer by a slick or high pressure salesperson and the consumer, only a short time late to leave the consumer wondering what the heck they purchased.

It amazes me that most consumers, YES MOST OF THEM, have no idea what their annuity does or how it works. It is only evident that they have no clue what they purchased. If this is how you feel then you are not in the minority. Unfortunately, there is never full disclosure to a consumer when they purchase their annuity.

So what's the point? If you own something that you don't know about, it's time to do a little homework and figure it out. There are so many features (good and bad) about annuities that if you wait until you need the money to figure it out, how yours works you may be disappointed. And if you are thinking about buying an annuity, don't let a high pressure salesperson talk you into it unless it is exactly what you need.

So, Mr. X who called me yesterday, I told you I would write a little article about you so this one's for you. Yes, you told me you weren't in the market for an annuity so why would you let a 'high pressure salesman' talk you into it? If you like what he had to say then tell him you'll get back to him and in the neamtime do your homework. If you didn't then tell him to go away...yes it's that simple.

Well, I hope this helps. But in the end, just stay away from the situation that would have you waking up one day thinking, 'what the heck did I buy'?

Now that you know more about how to avoid being talked into buying annuities, learn more about how to do your homework so you can buy the annuity that's right for you if that's what you are looking for.

Tony Bahu is the CEO of AnnuityMD.com and the author of 'Annuities: The Shocking Truths Revealed' which is a book that reveals the shocking secrets about annuities that agents and insurance companies DON'T want you to know. Please visit http://www.annuitymd.com/ for more information.

1 comment:

Lance said...

Hi Tony,

I run an insurance agency in Florida. We specialize in the senior market. I happen to agree with your blog. Most people do not know what they have. This includes annuities and other investments. High pressure salesman give this business a bad name. I am a christian and I believe in teaching and educating people about their options. They will do what is best for them. You need to know about your client before you can possibly understand what investment is right for them.

Annuities can be a very powerful tool for seniors if used properly. On the other side of the coin, I see many people that have their money with a financial firm and have no idea what it's actually in. They wonder why they are losing money. I believe that once a person reaches retirement their investment strategies need to change to accomodate a stronger emphasis on preservation. This is obviously dependent upon the individual.

Sincerely,
Lance D. Fisher Sr., SMS
www.ssflorida.com