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Inflation Adjusted Annuity: Do Index Annuities Save You From Inflation

do-index-annuities-save-you-from-inflation

Today's topic is one I screamed at the top of my lungs when I saw because one of my dearly beloved clients emailed me this article that said, "Index annuities are the perfect solution to inflation." What? We're going to talk about the reality of Fixed Index Annuities and inflation and completely and factually destroy this nonsense so all of you don't fall for this sales pitch.

So let's talk about index annuities, and disclaimer, I probably sell more index annuities than most people out there. Why? Because they're CD products, and I sell them as CD products. Normal CD type returns. They're principle protection, life insurance, and fixed annuities issued at the state level. They were designed in 1995 to compete with normal CD returns but do not address inflation! They're not the perfect solution for inflation, and for this person and all these other charlatans out there that are trying to convince people the bad chicken dinner seminars. They know they're misleading people just to get sales, and that's garbage!

Index annuities are great products. They're not the perfect product for inflation! Why? Because there's no perfect product for inflation! If there was, then that's what we would buy, but for someone to write an article like this is misleading. It’s the reason that the annuity industry has a bad reputation for sales because people are going to buy this nonsense.

There's no product on the planet that properly addresses inflation. Can you have an inflation-adjusted increase on your income stream with some types of annuities? Yes, you can, but the annuity companies don't give that away. Let me do a visual: same annuity type, one with and one without an increase for inflation. Without the increase, with the increase. No, I'm not doing Madonna's Vogue. This is reality.

Annuities are contracts and annuity companies have big buildings for a reason

So when the person says that index annuities are the perfect solution for inflation, they are talking about this! He's talking about this low number here, and he's not talking about how much time it will take for you to even get to this level. This is why I need to be out here doing these videos, doing my podcast, and writing truthful articles and blog posts about this because, unfortunately, a prominent site published this. Then other people got ahold of it and published it.

I wish that people that sold index annuities like this, that are the perfect solution for inflation, which they're not, I wish they were liable for that. I wish people could say, "Well, you said in this article that it's the perfect thing for inflation, but I've owned it for seven years from you, and it's not." They should be liable for that!

If they're writing the check that their rear end can't cash, their rear end should be on the line. Yes, I am passionate about this. Is it a competitive world out there? Absolutely. Do I sell annuities in all 50 states when they're appropriate and suitable? Absolutely. They're selling hopes and dreams. They're selling unicorns, chasing the butterflies. They're selling solutions that will never happen. Too many people are buying it, and too many people believe it.

Most of you have been around the block. Most of you have worked your rear end off for the money. I don't want you to go into a product with the money you worked so hard for, and you're buying a dream based on a fictitious article.

Can annuities address inflation? Yes. The perfect way to do it is when you need an income gap fill; let’s just say you're getting $3,000 a month between social security and whatever other investments and pensions you may have, and now you and Martha need an additional $500. Then at that time, we buy an immediate annuity reverse engineer to solve for that $500. That's how to do it.

By the way, you already own the best inflation annuity on the planet. Don't be out there, annuity hypocrite, "I had all the annuities, and I never bought an annuity stamp." Really? You already own one. If you have a social security number, you already own the best inflation annuity on the planet. It's called social security, and you have increased to that amount based upon what our DC politicians deem appropriate, and they just give it away. They just print more money. We've seen that. That's your best inflation annuity on the planet. The article should have said, "The best inflation annuity on the planet is social security," not that index annuities are the best inflation solution or whatever the title was.

Annuities are contracts. Annuity companies have big buildings for a reason: they don't give anything away. Index annuities are not the perfect solution for inflation. I hope you heard me.I get upset when there are salespeople out there that are pushing the envelope, and they're misleading the public, and it's uncalled for, and I get upset. You want someone passionate on your side; you want someone that's in your corner; you want someone that's going to tell the truth; you want someone that's going to be brutally factual.

Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.


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