5 Reasons You Should Not Buy An Annuity (And When To Surrender One You Have)

Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)

Ari Taublieb, CFP®, MBA

Entrepreneurship, Investing, Business, Careers, How To Retire, Retirement Planning, Stock Investing, Real Estate Investing, Retirement, Personal Finance, Save On Taxes, Early Retirement

4.7 • 583 Ratings

🗓️ 18 November 2024

⏱️ 19 minutes

🔗️ Recording | iTunes | RSS

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Summary

Ever wondered if annuities are worth the hype? Let me share a cautionary tale that might change your perspective. My parents found themselves trapped in a conservative annuity with high fees, resulting in significant opportunity costs. We'll uncover the five critical reasons to steer clear of these financial products, from limited growth potential to inflexible terms, and explore the impact of surrendering an annuity on your tax situation. Whether you're contemplating an annuity or already ow...

Transcript

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0:00.0	I do not like annuities, and I will be very transparent about that.
0:05.0	Now, there is a role for them in a retirement plan that I will discuss, but one of the advisors
0:10.7	that my parents worked with at one point had recommended an annuity.
0:15.6	And the problem with the annuity was, for my parents, it was way too conservative. The fees were way too high, and it
0:22.7	ended up resulting in significant opportunity cost, meaning if they had just instead invested their
0:28.4	money into a brokerage account, which I call a superhero account, they would have much more
0:33.2	money today. So I'm going to explain the five reasons to not purchase an annuity. And if you do have
0:39.2	one, how to think about whether it makes sense to surrender it. Sometimes my feedback is, you know what,
0:44.9	it actually makes sense to keep it at this point. Sometimes it's, nope, certainly still makes sense to
0:50.1	surrender it. But we've got to be careful because there could be tax implications. So this is just
0:54.8	going to be your complete guide to thinking through annuities. If you don't have an annuity and you just want to hear an analysis about it, be my guest and listen to this. If you're like, look, I don't have any interest in annuities. I already don't like them. And I don't want to hear more about them. make sure to check out one of the other episodes because this might not be the one for you.
1:13.7	I am a podcast. I already don't like them and I don't want to hear more about them. Make sure to check out one of the other episodes because this might not be the one for you.
1:13.7	I am a podcast listener in addition to a podcast host and I appreciate one other guests tell me,
1:20.1	hey, this might not be applicable to you, check something else out or nope, this could be right in
1:25.2	alignment with what you're looking for.
1:26.5	So I want to help as many people as possible, which is why I have a wide variety of content.
1:32.4	Now, I'm going to start with a review of the week.
1:36.0	Now, this review was right after I released my special episode where I announced that I was at episode 200. So thank you so much for
1:46.5	reviewing, letting people know your thoughts on the show. If you have not done it already,
1:50.7	and I've helped in any way, please do leave a review. Either if you're watching on YouTube,
1:55.7	drop a comment. And if you are currently on the podcast app, you can leave a review on Apple,
2:00.8	but Spotify does not let you.
	...

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