089 Mr. FIA-X: The Empty Promises Behind Fixed Index Annuities

About Fun With Annuities Episode #89

Back by popular demand once again, Mr. FIA-X joins me on Fun With Annuities episode #89. Without a doubt, he is one of the most popular guests I have on because people are so interested in the FIA (aka: Fixed Indexed Annuity) topic and want to know the brutal truth.

We really dug into the current “go-go” product of what is known in the industry as “buffer” annuities.  I call them CO-PAY annuities because if you buy these monsters, you share in the downside up to certain percentage.  Call it a “weird annuity margin call.”  I call it “too good to be true,” because it is.  

Never forget that if the sales pitch sounds too good to be true, your “radar” needs to go off.  Annuities, regardless of the type, are contracts.  There’s no polishing up a contract, as we all know.

Mr. FIA-X also address the end of the year and first of the year “fire sale-upfront bonus” nonsense that proliferates the FIA category.  Free agent trips, soft-money arrangements, over the top agent gifts are the horrific incentives dangled in front of agents to sell more product.  Fiduciary actions are definitely compromised with these types of FIA sales practices.

“Don’t ever-ever-ever confuse features on an annuity with benefits. Never” — Mr. FIA-X

I always kid Mr. FIA-X that he will have to come on my podcast ongoing because the FIA sales pitches will always have to be factually dissected so the consumer understands what is being pitched.

Who is Mr. FIA-X, and why is he hiding his identity?

He's now retired from the fixed index annuity business but was there from its inception. He has been at the secret annuity carrier meetings and knows the confidential information. Mr. FIA-X revealed never shared before details that he knew the consumer needed to know. But, they were facts that FIA carriers really don't want consumers to know. That's why we have to protect his identity.

PS- Once again…don't email me and ask me to reveal who it is or confirm your guess. Never going to happen!

In this episode, The Annuity Man and Mr. FIA-X discuss:  

• Avoiding upfront bonuses
• Prioritizing the interests of the consumer
• Market-like returns
• The worst-case scenario for annuities

Key Takeaways:  

• Don’t let yourself be fooled by upfront bonuses and not everybody needs an income rider. Be reminded that the purpose of annuities is to transfer your risk.  
• If you hear the sales pitch that you’ll get ‘market-like returns’, take your money and run. They don’t know what they’re talking about.  
• Index annuities are not an investment, they're transfer risk, principle protection products because the worst-case scenario is that you don’t lose any 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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