Buyer Beware! Part II

| May 03, 2018
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As a follow up to the first piece I wrote on Buyer Beware, I wanted to continue to draw attention to certain “offers” that are being sent to the buyers of annuity products that we had used over a span of years from 2001 to 2015. As we had recognized during this time period, the products being offered by a variety of insurance carriers were compelling and, in most cases, highly advantageous to the client. The ability to invest with tax advantages having exposure to market returns while shifting market risk by the use of riders such as a Guaranteed Minimum Income or Death Benefit offered unique benefits to investors. 

As I indicated, these are legal contracts that must be obligated by the issuing party and therefore cannot be modified beyond contract stipulations by the insurance carriers.  “Offers” are being made by the issuers of these coveted products. As I suggested many of these offers are NOT in the best interest for the majority of clients. 

To make matters worse, the fact many of these carriers will pay a commission to a broker whose clients accept these offers is an inherent conflict of interest in providing a fiduciary duty and standard of care. Recently an article came out in Investment News which echoes my concern and also considers who may best benefit from these “offers.” Please click on the following link to see the referenced article: Insurers still grappling with costly variable-annuity promises

As always, it has been our mission to always putting our clients’ interests first and we are committed to doing so each and every day. Thank you again for your business and your loyalty and best wishes to all of us for a happy, healthy and fulfilling future.  

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