074 Kerry Pechter: Bermuda Triangle Retirement Zone

About Fun With Annuities Episode #74

Welcome to the Fun With Annuities mic, a co-host who is crazy connected in the retirement income industry - Kerry Pechter. Kerry is the founder and editor of the Retirement Income Journal (RIJ), which recently celebrated its 500th issue. So stoked to have him as a guest because his unbiased newsletter is something I look forward to reading every single week.

Kerry drops this truth bomb, "Don't let taxes rule your life; it's more important to have guaranteed income. Buy yourself the guaranteed income that will give you peace of mind."

Kerry and I primarily discussed a recent article of his that explains his Bermuda Triangle strategy. This strategy is about a disturbing current trend in the retirement income industry where holding companies/buyout firms are using life/annuity companies to capture permanent capital (usually FIA assets) for their private equity partners or affiliates. As I always say, over 10,000 baby boomers are hitting the age of 65 every day. That's what I call a demographic tidal wave, and it is certainly drawing the attention of the masters of the money universe.

We also discussed current interest rates and the possibility of a crypto-based annuity strategy! There is no way you won't love this podcast.

Brief Bio of Co-Host Kerry Pechter:

When it comes to understanding the biggest issues facing people in retirement, Kerry Pechter is the go-to guy in the industry. In 2009 he set out to create a digital-only, subscription-based publication that would provide unconflicted news and analysis to the annuity and financial advice industries. The Retirement Income Journal RIJ, which reaches about 7,100 each week, recently celebrated its 500th issue.

Pechter is the author of Annuities for Dummies (Wiley, 2008) and two other non-fiction books. He has been an editor of Annuity Market News, a writer in Vanguard’s individual annuity marketing department, a senior editor at Rodale Press and a reporter for The Billings (MT) Gazette.

He is one of the few journalists invited each year to the meeting of the Pension Research Council at the Wharton School of the University of Pennsylvania. His feature articles have appeared in The New York Times, Wall Street Journal, the Los Angeles Times, and other national publications. He is a contributor to Forbes.com’s Retirement section, and blogs on LinkedIn to more than 2,000 followers.

Source: retirementincomejournal.com

In this episode, The Annuity Man and Kerry Pechter discuss::

• What is the Bermuda Triangle Strategy?
• How the Bermuda Triangle Strategy will affect you.
• The problem with the annuity industry.
• Prioritizing the consumer over anything.

Key Takeaways:

• The points of the triangle are: a life/annuity company with large in-force, “blocks” of (usually) fixed annuities with guaranteed returns; a Bermuda-based or other offshore reinsurer; and a major buyout firm or money manager.
• The issue is with transparency and the lack of communication between the company and the client that’s affected. The interests are not aligned with the people that hold your money.
• Many members of the annuity industry focus more on the growth story rather than focusing on the customer getting the contractual guarantee.
• The consumers all need to understand what’s happening with their money.

Fun With Annuities® Podcast is hosted by America’s Annuity Agent®, Stan Haithcock, The Annuity Man®. Hear brutal annuity facts with no sales pitches from the top independent agent in the country, licensed in all 50 states. Author of 7 books, Stan dives deep on all annuity types and strategies. It’s fun, learning the contractual truths on how annuities actually work and if they’ll fit your personal retirement lifestyle.

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