Addressing Annuity Critics

**Financial Misstep: Forming Negative Perceptions Based on Criticism of Fixed Annuities Without Fully Understanding the Details**

**Responding to Annuity Critics**

In today’s information age, misinformation can easily mislead. It is essential to conduct thorough research and understand the mechanics of any financial instrument you choose for savings and retirement purposes. This includes comprehending the associated risks, restrictions, features, benefits, and how they align with your specific financial objectives. It’s also crucial to recognize the perspective and motivations behind the information you encounter, as many are vying for your business.

When presented with accurate details regarding the features and benefits of various financial options, most individuals can determine what is most suitable for them. However, misleading claims, often perpetuated by competitors or misinformed media, can instill fear based on opinion rather than fact. Unfortunately, some parties employ fear tactics to gain an unwarranted advantage. So, whom should you trust? It’s common advice to “get it in writing,” and that’s precisely what an insurance company providing fixed annuities offers. With these contracts, you have clarity regarding the risks, guarantees, and liquidity provisions. Our primary concern is to help you grasp fundamental concepts and their potential benefits in securing a stable financial future.

It’s important to note that annuities may not be suitable for everyone. Therefore, how do you assess their appropriateness for your situation? While the information available on this website serves as a valuable starting point, it should not replace a discussion about your individual circumstances with a financial professional from [Company Name]. Various tools exist to help you achieve a worry-free retirement, and using the right tool for the right task is essential—just as you wouldn’t consult a cardiologist for cataracts.

No single financial vehicle suits every scenario or encompasses all aspects of your retirement savings. Once you identify specific objectives for your retirement planning, you can evaluate and incorporate the most fitting tools into your strategy.

We aim to provide you with valuable insights, supported by statistics highlighting the growing popularity of fixed annuities in retirement planning. Additionally, we intend to address some negative perspectives expressed by opponents and competitors. We encourage you to conduct diligent research and develop your opinion based firmly on facts rather than fiction.

Sales in fixed indexed annuities saw a remarkable increase, climbing from over $3 billion in 1997 to more than $35 billion in 2012. This substantial growth has led some opponents and competitors to depict these products negatively, suggesting that consumers have been misled into believing they offer a superior alternative to traditional investment vehicles. However, these assertions lack substantial evidence, particularly when considering the limited number of complaints recorded. In fact, in 2012, the industry reported an average of just one complaint for every $633 million of annuity premium sold, and one complaint for every 9,300 annuities purchased. Fixed indexed annuity complaints numbered 54 nationwide, in stark contrast to the 15,000 complaints logged by FINRA and the SEC. We encourage you to form your own perspective on this matter.

To further clarify, let’s address some common misconceptions about fixed indexed annuities as a viable alternative to conventional financial products. Here are a few notable claims and their corresponding facts:

**Claim:** Annuities are inferior investments, historically outperformed by other investment vehicles.

**Fact:** While it’s true that variable annuities can carry market risks, fixed indexed annuities are designed as fixed products that are not subject to market fluctuations. As such, a direct comparison between the two is misleading since they operate as fundamentally different types of vehicles. Unfortunately, critics often fail to recognize this distinction.

**Claim:** All annuity products carry fees.

**Fact:** While certain annuities do come with fees, numerous fixed indexed annuities are available without any associated fees. Although some financial costs may be embedded in fixed annuities, they typically do not involve fees that affect your principal. Additionally, optional riders may be available for those seeking enhanced benefits for a fee.

**Claim:** Agent commissions drive annuity recommendations.

**Fact:** Doubts regarding agents’ motivations often center around commission-based compensation. However, it’s important to note that all financial professionals receive compensation for the services they provide in retirement planning. Whether they are compensated through commissions or an ongoing fee structure, responsible recommendations will always come from professionals committed to prioritizing their clients’ needs above their own.

**Claim: Insurance agents lack the qualifications to provide financial advice.**

**Fact:** Insurance agents must obtain a license from the state in which they operate and complete specific training required by their respective companies before they can offer products for sale. This process qualifies them to provide tailored advice regarding the features and benefits of these products as they relate to retirement planning. However, it is important to note that agents are not authorized to offer financial advice related to securities unless they hold the appropriate licenses.

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**Claim: Insurance companies do not ensure the safety of your funds.**

**Fact:** While it’s true that variable products offered by insurance companies may not guarantee the safety of the principal, fixed products are designed to be protected from market losses. We routinely rely on insurance companies to safeguard our homes, vehicles, health, and lives. This industry operates under stringent regulations to protect consumers from potential company insolvencies. For more information on this topic, please refer to the following link for historical data: http://www.indexannuity.org/ic2004b.htm#safety.

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**Claim: Annuities are overly complex.**

**Fact:** The abundance of choices in the market can indeed lead to confusion. Collaborating with a Future Benefits agent can help clarify the basics and determine if annuities are suitable for your financial situation. Once safety is established as a priority, the focus shifts to aligning the best features of annuities with your individual financial goals.

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**Claim: There are superior options for IRA funds compared to annuities.**

**Fact:** While annuities do not offer additional tax benefits for IRA holders, they are often suitable for funds considered long-term investments. Annuities can serve as a reliable source of supplemental lifetime income during retirement or as a means to protect a portion of your nest egg from market volatility.

Disregard the Critics and Focus on the Facts.

We invite you to schedule a complimentary, no-obligation financial review with a Future Benefits Agent.

For assistance, please call us at 901-754-2040.

*Please note that we are not stock brokers or financial advisors, and we do not offer investment advice.

Source: www.indexannuity.org

http://annuitynews.com/Article/FIA-Complaints-Continue-To-Be-Very-Low/377114#.U7EgTvIU98R

*We do not provide tax or securities advice.

Please refer to our Professional Disclaimer for more information.