When Barry J. Dyke and Stan The Annuity Man are together for a discussion… the brutal truth will be told. I love Barry for his no-hold-back honesty about the financial services industry and his willingness to expose “how the sausage is made” when it comes to your money. His books are a shining light of truth about how financial institutions really work, and their too often “do as I say, but not as I do” approach with the consumer.
Being on Barry’s show Economic Warrior on November 4, 2020 was fantastic because he allowed me to unveil the hardcore facts about annuities, the annuity industry, and the sometimes-horrific sales environment surrounding this controversial category. This specific show covers annuity companies and the current products available and what to look out for with annuity sales pitches. I specifically wanted to drive the point home that if you are looking for pure market growth, then you should NEVER buy an annuity. That flies in the face of the typical sales pitches that you will hear from agents, but brutal facts are brutal facts. The reality is that Fixed Index Annuities (FIAs) are CD product; and Variable Annuities (VAs) have limitations on the mutual fund (i.e. separate account) choices that you have within the policy. You should NEVER have limitations on potential growth, which eliminates all annuity types.
As I told Barry and his audience, you own an annuity (or annuity type) for its contractual guarantees. You own an annuity for what it will do, not might do. Annuities are contracts, not investments. Thanks to Barry for giving me the mic and letting me swing the hammer. Give it a listen and enjoy hearing Barry and I go at it. Also, you should add Barry (Barry J. Dyke, Castle Asset Management) as a factual voice to your ongoing list of financial resources.