Just wondering how they feel about the inaccuracies in this piece.
January 20, 2026 by Sheryl J. Moore
Last I checked, AARP was a paid promoter annuities from New York Life Insurance Company. Is that no longer the case?
ChatGPT says they are still aligned, but this article, The Most Popular Annuities, Explained, makes it appear they are not.
This article’s comparisons of indexed annuities to the stock market is completely inappropriate. Annuities are insurance; not investments. They are not intended to keep pace with the market. However, unlike the market, annuities guarantee a paycheck that the purchaser cannot outlive.
A comparison of annuities versus mutual funds, index funds or ETFs is reckless. Annuities are not about achieving greater alpha, but rather about mitigating risk. Purchasing annuities has a “cost,” as the insurer is guaranteeing a paycheck that cannot be outlived. Of course annuities wouldn’t outperform investments!
The insurance company cannot include the dividends on an index to their indexed annuity or structured annuity contracts, as the people that purchase these products are not DIRECTLY INVESTED in the index; they are merely earning money BASED UPON the performance of that index. It also bears noting that although these products usually do not include the dividends on the index in their calculations, mutual funds and ETFs do not have a floor on losses- indexed annuities promise no less than 0% interest be credited to the contract. Structured annuities promise to limit losses on the downside as well.
While a penalty will usually be assessed in the event the annuity purchaser completely liquidates their annuity, they are able to withdrawal up to [10%] of the annuity’s value, each year, without penalty. Never mind that annuities also provide liquidity in the event of disability, nursing home confinement, unemployment and other events. And I won’t even get started about liquidity via “income riders’…
One does not have to “roll” their annuity into a SPIA to create an income stream. If an “income rider” is not purchased, one can always annuitize the contract, in order to receive a paycheck for life.
As an FYI- annuities with commissions are more advantageous for the purchaser, if they plan to hold the annuity beyond a few years. Fee-based financial planners charge an assets under management fee indefinitely, so this can erode the annuity purchaser’s value over time.
Because of life insurance regulation, it is practically impossible for a client to put ALL of their assets into an annuity. Ask any annuity agent, and they will validate this fact.
I would love to be a fly on the wall in the New York Life Insurance Company home office this week. Just wondering how they feel about the inaccuracies in this piece. -sjm
