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The NO BS Guide to Annuity Returns



I am a fiduciary, and as a result I have an obligation to tell you what most "salespeople" and especially captive agents who work for a company can't or won't. Consumers pumped record money into annuities in 2023, on the back of higher interest rates and anxiety about the stock market and U.S. economy, experts said. Americans have bought about $360 billion of annuities this year, according to an estimate by LIMRA, an insurance industry group.


When there's a $360,000,000,000 annual spend by consumers, you're going to end up with fraud, deception, and slimy sales tactics. Almost every day, I get solicitations from marketers who want to teach me how to manipulate you to sell you more. The $360b in annuities sold in 2023 paid salespeople somewhere in the vicinity of $500,000,000 or more. That's what's at stake. So it's NOT popular for an industry insider and expert like me to spill the beans. I'm a fiduciary. I work for you. I represent honest companies, some of whom are faith based. I'm not going to lie to you to sell you anything. So, let's talk about the true returns on annuities.


 

Things You Need To Know About Annuities: PART 2


What is a REALISTIC return to expect in an Annuity?

This is a bit of a trick questions because there are a lot of variables, here are a few:

- What type of Annuity?

- Are there riders included?

- What is the primary objective of that products design? (Income? Legacy? Growth?)

- What company are you using?

- What Indexes are being used?

- How long is the surrender period?


I am going to give a VERY GENERIC SUMMARY using what I believe to be the top products in each category:


1. Fixed Annuity (MYGA) - Whatever that fixed rate offering is, simple (5.50% to 6.30% right now). Obviously an easy one because that rate is guaranteed.


2. Fixed Indexed Annuity (FIA) for Guaranteed Income - 2% to 3% Annually. This isn't the crappy FIAs with low guarantees. I'm talking about the FIAs with high guaranteed payouts. The insurance company pits all their budget into that side of the product snd it lease little left for good index options and rates.


3. FIA with Principal Bonus and No Income Rider - 4% to 5%. Many agents sell these Bonus annuities for accumulation because it looks sexy up front. Most of these products end up being underperformers because that bonus has a big cost to the insurance company. This is where a smart consumer needs to avoid the sales pitch.


4. FIA with No Bonus, straight Accumulation - 6% to 8%. I want to further clarify that it's VERY product dependent. It has to be a product design appropriately for accumulation, with solid indexes at good starting rates and good rate integrity at renewal, then it's all subject to what the market does.


5. No one cares about RILA or VA.


The reason I use these numbers is because the agent who wrote this originally has seen all of these, reviewed thousands of in force policies and spoke to experts all across the industry and that's the range we are seeing on policies. It doesn't matter what a salesperson SAYS. They'll say what ever they need to in order to close you. I don't "close you."


I know agents will FLY in from the sidelines showing statements that are higher and blah blah, I get it. I am talking industry average, not your perfectly timed statement that was a complete one off. I've seen crazy returns but also horrid returns too. We've seen a 51% increase in one year, but that was an anomoly. We've also seen a 51% decrease by reckless account management, but for some reason, the agents NEVER show you that slide.


Buy annuities from us with a guaranteed return AND protection from loss of principal. Period.


Don't let anyone else tell you to illustrate them using whatever crazy engineered index that looks good on paper. It's all backtested nonsense.


Remember most of these agents selling most of these policies :

  1. Either work for a company as a captive agent, so they have to sell you what their company offers and they have to present you using only the charts their marketing department comes up with or

  2. They work with shady companies whose primary incentive (to the agent) is when you move a million dollars over, they IMMEDIATELY write a check to the agent for as much as $80,000


Take your time. Do not buy a sales pitch because someone bought you a free cheap steak dinner at a seminar, or because they advertise with your favorite radio host. Slow down, understand the offering, study the company, ask about the commissions, and make sure you understand your window to cancel if you think you accidentally did a shady deal.


If you want me to look over your current annuities, for FREE, email help@formamerica.com or call (888) 434-6471. Do not leave your financial information on voicemail or through email. We will call you back for a confidential discussion.


 

David Happe is licensed in the state of Florida to sell state certified annuities and insurance as an independent, fiduciary agent for A-rated companies across the State of Florida.


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