The Allianz Masterdex 10. A reader shares a heart-breaking story of the real-life danger of pouring money into a hyped annuity without knowing how they really work continues to cost people thousands of dollars and result in heartbreaking stories.
As an investments management advisor and president of Common Sense Advisors, I receive frequent emails from retirees and their relatives lamenting their decision to put their life’s savings into one annuity or another.
I have made it a bit of a personal crusade to warn consumers about annuity stipulations that can cost them all of their bonuses and interest if they choose to withdraw early from them.
Insurance companies have pushed annuities with 7% guaranteed riders for two reasons: low interest rates and volatile stock markets. I encourage investors to make sure that they understand the term “guaranteed income” before buying such an annuity.
Annuities that sound too good to be true often are, according to a leading U.S. management investment advisor. The dirty little secret about these annuities is that the “guaranteed” returns associated with them may only equal 1-2% per year no matter how many times they use the word “guaranteed.” The penalties to withdraw early are huge. As a financial advisor in Tennessee I have written extensively about the dangers of annuities for retirees.
I have a particular issue with the so-called “guaranteed income” riders, which he says are touted during slick lunch and dinner seminars aimed at retirees who are looking for ways to invest smartly.
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Attention Retirees: Do you have (or are you considering) an annuity that guarantees a 7% return?
If so, listen closely, because I believe that many retirees that have purchased annuities with an income guarantee have done so under false pretenses. They think it works one way when in fact, it doesn’t even come close to working the way they think!
Imagine putting your nest egg into something because you think it guarantees you a 7% return—only to find out later that it doesn’t! How would that make you feel?
The dangers associated with investing in equity indexed annuities . . . don’t make this Mistake! I will be using examples from the Allianz Master Dex X, but I am just as opposed to those offered by Aviva, American Equity, Jackson National, ING, Lincoln National, Midland National and North American Company.
I hear from people virtually every DAY asking me about these products because they sound so good. What I’m going to share with you regarding equity indexed annuities like the Allianz Master Dex X in this blog will allow you see why equity indexed annuities may not do what you expect them to.
The information in this blog may literally prevent you from making the biggest financial mistake of your life.