Beware of these overhyped financial strategies
February 25, 2020 by Liz Weston, NerdWallet
A good rule of thumb when you’re trying to eat healthfully is to beware of any food you see advertised. The most beneficial fare — whole grains, fruits, vegetables — tends not to have a marketing budget.
Click HERE to read the full story via Star Tribune
Wink’s Note:
Anyone, outside of a B/D, who refers to these products as “EIAs” immediately loses credibility.
IAs are NOT intended to provide market-like returns; they are intended to “beat the bank” by 1% – 2%. They are INSURANCE. They provide guaranteed lifetime income the purchaser cannot outlive. They also provide a guaranteed return of no less than 0% each year (can your stocks do that?).
So, yes, gains are limited.
“High commissions?” Relative to what? Over a ten-year term, the mutual fund salesperson gets paid 78% greater than the IA salesperson. Let’s talk about THAT. And purchasers can “get [their] money out” of an annuity. They can take up to 10% annually without penalty, & even more in the event of terminal illness, nursing home confinement, & even unemployment!
The entire point of cash value life insurance is that it is not TEMPORARY like term.
Single people with no dependents still need life insurance if they have debt, as an example.
-sjm