Why Are We Averse to Annuities?
October 3, 2023 by Jessica Bebel
On this episode of The Long View, CEO and founder of Hueler Companies, Kelli Hueler, discusses Income Solutions, retirement, and the role of annuities.
Here are a few excerpts from Hueler’s conversation with Morningstar’s Christine Benz and Jeff Ptak: Click HERE to read
Wink’s Moore on the Market: This was an interesting read.
Kelli Hueler had an insightful conversation with Morningstar staff.
“One theory for under-annuitization among investors is advisors have certain conflicts of interest. [Fee-based/fee-only advisors are] charging clients a percentage of their assets on an ongoing basis. So, they don’t necessarily have an incentive to recommend a strategy that removes fee-generating assets from the portfolio.”
My perception is that these advisors can’t get past the fact that these products are commissionable, much less that encouraging a spend-down reduces their AUM.
What do you think are the biggest reasons that fee-based/fee-only advisors aren’t working with annuities?
There is such a laundry list of objections; I don’t know that we have enough ammo to handle them all… -sjm