Does It Ever Make Sense to Purchase an Annuity?

Ready For Retirement

James Conole, CFP®

Investment Planning, Bonds, Education, Stocks, Cash, Business, Dividend Investing, Retirement Planning, Retirement, Investing, Tax Planning

5 • 706 Ratings

🗓️ 31 October 2023

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

Have you ever wondered if purchasing an annuity makes sense for you? There are two conflicting opinions from financial advisors: some advocate for annuities while others advise against them. James explores the concept of being a fiduciary and the challenges of understanding the financial advisory industry. He covers when annuities may be a suitable option, such as providing guarantees, protecting against longevity, guaranteeing core expenses, and the benefits of Qualified Longevity Annuity C...

Transcript

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0:00.0	Does it ever make sense to purchase an annuity?
0:03.1	Well, if you speak to a financial advisor that works for an insurance company, they'll almost
0:06.9	certainly tell you yes.
0:08.4	But if you speak with a fee-only financial advisor, they'll almost certainly tell you no.
0:13.0	So who should you believe?
0:14.9	Well, in today's episode of Ready for Retirement, we'll walk through when it does and when it
0:18.3	doesn't make sense to purchase an annuity.
0:23.2	This is another episode of Ready for Retirement.
0:25.9	I'm your host, James Cannell, and I'm here to teach you how to get the most of the life with your money.
0:30.1	And now, on to the episode.
0:34.4	Today's episode comes from a listener question, and this listener is Adam. Hey, Adam. Adam says this. He says, I've met with multiple financial advisors, and all of them have two things in common. Number one, they all say they are fiduciary. Number two, they all try and pitch me on various types of annuities to supplement or augment my portfolio. Can you please address annuities on a show? Everything I've read online says to stay away from
0:55.4	annuities, all types, and I'm losing trust for the financial advisor industry. Are there cases
1:00.3	where an annuity is a good move? Thank you. Well, thank you, Adam, for that question. I will add to it.
1:05.9	I think this is a very valid complaint of the financial advisory industry as a whole, where you can have five
1:12.0	different people line up and tell you their financial advisors, but they all do completely different
1:16.5	things. One might sell insurance. One might sell investments only. One might do hourly work. One might
1:23.9	do investment management. One might do only fixed fee financial planning.
1:32.4	Really, there's all different kinds of financial advisors, which as a consumer or as an individual looking for financial advice, that becomes very confusing.
1:35.9	If you look for a doctor, you know what a doctor does.
1:38.3	If you look for an attorney, you know what an attorney does.
1:41.0	And maybe they specialize in different things.
1:42.9	But if you're looking for a financial advisor, a lot of people call themselves financial advisors, and there's no one tried and true
	...

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