This article made me sad for several reasons

March 1, 2023 by Sheryl J. Moore

This article, 3 REASONS YOU SHOULDN’T INVEST IN ANNUITIES  made me sad. For several reasons.

First, I cannot IMAGINE someone being sold an annuity that only yields 2% annually- especially “a few years later” than 2002? If that were truly the case, it HAD to be a very short-term product. That said, the commission would have had to been relatively low. The suggestion that “[agents] make between 3% to as much as 8% selling annuities” would be misleading, that being the case.

Secondly- GOSH, Charles Mizrahi, you couldn’t be more wrong than your chart that lists “Annuity Fees by Type!” I counted eleven inaccuracies on that chart alone! Why would you ever rely on Annuity.org for reliable information on annuities? The company that owns this domain makes money REPLACING annuities with structured settlements! Don’t you think that is a conflict of interest?!?

Look- I work as a fact-checking resource for outlets like The Wall Street Journal and The New York Times. Feel free to reach-out to me in the future, for information like this.

On that topic, there are three-year annuities offering guaranteed yields of 6% annually right now. While that is still less than inflation, you are missing that point that annuities are an insurance product. They offer a guaranteed income stream for the purchaser’s LIFE. That is something a stock/bond portfolio cannot offer. This is not about interest potential; it is about risk transfer.

Interestingly- fixed and indexed annuities offer a guaranteed return of principal AND guaranteed lifetime income. THAT is certainly something stocks cannot promise.

And while I can appreciate the spirit of the suggestion that consumers purchase the STOCKS of annuity insurance companies, this still will not provide a guaranteed income that the purchaser cannot outlive.

Please get educated about annuities. Consumers are looking to you as a credible source of information on financial services.