If “fixed income annuities” are good for retirees.
April 8, 2024 by Sheryl J. Moore
If you fast-forward to about the 3:30 second mark on this video, Click HERE to view you will see that a consumer asks Terry Savage if “fixed income annuities” are good for retirees.
Terry responds that with “fixed indexed annuities” only the insurance agent is going to get rich.
She closes with “don’t do it,” when it comes to indexed annuities.
So strange that she would be so vehemently against a product that can guarantee her followers an income that they cannot outlive in retirement.
I wonder where she is getting her information, which fuels her inference that indexed annuities pay high commissions? Relative to what?
Twenty years ago, the typical indexed annuity paid a double-digit commission. Now, the average commission is nearly half of that.
A fee’d advisor charging 1.00% AUM would make more in seven years’ time, than the person selling the average indexed annuity. Perhaps that is where this is coming from?
And never mind that the insurance company pays the agent’s commission; the consumer doesn’t lose any value as a result of the commission being paid.
My concern is that this is a national figure, in the area of finance, who may not have accurate information on indexed annuities.
As a result, I would have to advise that consumers “don’t do it,” if they are considering heeding Ms. Savage’s advice. -sjm