Portfolio managers Adrian Fadrhonc and Lyman Howard said people buying and holding annuities often do not know what they are purchasing or already own.

“Even the people selling them sometimes do not understand them,” said Howard.

Some emerging trends are acting to make fixed-indexed annuities and variable annuities more popular or at least more noticed, the two said. Defined-benefit pension plans are less common, bond interest rates are extremely low, markets may be nearing the end of a positive cycle and more baby boomers are retiring. The demise of defined-benefit pension plans is forcing the market to come up with alternatives, Fadrhonc noted.

“I think annuities are getting more press now because they are serving as a substitute for those people who want to be more conservative but do not want bonds,” Lyman said.

Click HERE to read the full story via Financial Advisor