Awful Annuity "Guarantees"
Talking Real Money - Investing Talk
Don McDonald
4.5 • 810 Ratings
🗓️ 29 March 2023
⏱️ 24 minutes
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| 0:00.0 | Reality Radio for a really great future. |
| 0:08.0 | We're talking real money. |
| 0:10.8 | Let's begin with a story as old as time. |
| 0:15.3 | A story about you and your future, about you and your investments. Like so many, you've probably |
| 0:26.2 | visited with a person who claims to be a fiduciary advisor or who just provides financial services, |
| 0:37.2 | like your local Edward Jones or the bank down the |
| 0:42.5 | street. You sell a house. You collect $100,000. In 2017, you walk into your friendly neighborhood citizens bank and talk to the friendly financial advisory person in the bank about what you should do with your money. |
| 1:09.1 | Because you express a desire for safety and income in retirement, |
| 1:13.9 | they invest your money in an immediate annuity. Your $100,000 goes into the immediate |
| 1:22.8 | annuity, an annuity that you count on to provide income for the rest of your life. |
| 1:30.8 | Well, fast forward two years to 2017. |
| 1:37.6 | You go to get your money, some of your money out of your annuity. |
| 1:41.4 | You are informed by your friendly neighborhood banker that your |
| 1:47.7 | account with this very safe annuity is frozen. It's cold as ice. It's willing to sacrifice your money. |
| 1:59.6 | I didn't sing it. |
| 2:01.6 | And now you have to go take out a mortgage on your house to just survive because you can't get your money. |
| 2:08.9 | Now it's 2023. |
| 2:11.6 | And your money is still frozen in what was sold to you. |
| 2:18.3 | I guarantee it because they always are sold as an absolutely no-lose investment. |
| 2:25.9 | Now, the investment in question is when we talked about a couple of years ago, after a Wall Street Journal investigation. |
| 2:32.0 | It was called the annuity was from a banker's life. |
| 2:39.2 | And the story is really, really, it's terrible for investors. |
... |
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