In today's episode of The Truly Diversified Show, Ben turns to one of the most common, not to mention costly, missteps people make as they approach retirement.

While the topic of annuities might not impact you immediately, it provides an important cautionary tale and valuable insight into financial products that are often misunderstood, misrepresented, or overhyped. The focus here is on understanding the promises and pitfalls behind this widely sold tool, and why so many pre-retirees end up regretting their decision.

You'll hear a breakdown of how these products are typically marketed, what they actually provide, and the realities of their performance over time. The discussion explores why they can seem attractive, particularly the safety and guarantees they appear to offer, while also highlighting the limits, restrictions, and potential frustrations that accompany them. Along the way, it addresses why people often feel trapped once they’ve signed on and how the incentives for those selling these products can work against the buyer’s best interests.

If you're considering using these financial tools, or are already committed and questioning your decision, this episode offers a blend of caution, clarity, and hope for better options. Thinking about an annuity? Learn the hidden costs most salespeople won’t tell you.

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Enjoy!

Key takeaways:

• Why annuities are often considered controversial, including the lack of experience and ethics among many salespeople. 

• The concept of fixed indexed annuities (FIA), a product from insurance companies that offer guarantees, and how they differ from variable annuities.

• The common misconceptions and risks of annuities, including overhyped promises of high returns and lack of losses, creating unrealistic expectations.

• Surrender periods for annuities, from 10 to 15 years, and the high penalties associated with early withdrawal. 

• Life settlements as an alternative to annuities and their potential for higher returns.

• And much more...

Resources:

Life Asset, LLC

Disclaimer: 

The views, information, or opinions expressed during this podcast are solely those of the individuals involved and do not necessarily represent those of The Truly Diversified Show or its affiliates. The content provided is for informational and entertainment purposes only and is not intended to be a substitute for professional advice. We make no representations as to the accuracy, completeness, suitability, or validity of any information on this podcast and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Listeners should consult with a professional for specific advice tailored to their situation. By accessing this podcast, you acknowledge that any reliance on the content is at your own risk.