AnnuityMD.com today released its copy of ‘Annuities: The Warning Report.’ This is a Free Annuity Report designed to make consumers aware of the warnings they need to heed when being sold an annuity.

It is a definite read for anyone looking at or considering annuities.

This free report can be obtained by going to http://www.AnnuityMD.com/freeannuityreport.html

AnnuityMD.com introduces the ‘Annuities: The Warning Report’

AnnuityMD.com recently released its new free report on annuities titles ‘Annuities: The Warning Report.’ This report is a document introducing consumers to 7 warnings they need to pay attention to when purchasing annuities.

It is no secret that there are many areas of annuities that consumers need to be aware of. Furthermore, consumers need to be aware of their agent’s intentions and why an agent would recommend an annuity. Furthermore, their are particular aspects of annuities that are not so obvious to consumers. This includes the way they work, the benefits they offer, and many other similar things.

The report offers consumers an insight into some of the things they need to be careful and aware of when purchasing annuities. Furthermore, it reveals a possible insight into why an agent or their longstanding broker may go about recommending an annuity.

For any consumer, this report can be of great benefit. Furthemore, it can be a benefit to consumers who already are annuity owners. It can offer insight and assistance to those people to allow them to either confirm their suspicions or put them to rest.

The bottom line is that, the report on annuities is a necessity for anyone who is considering annuities. And best of all, it is a free report. So for anyone who knows anyone buying or considering annuities, this is a great resource.

The Free Annuity Report can be obtained by going to http://www.AnnuityMD.com/freeannuityreport.html.

Ok…so here it is. Problem #3 of the Annuities Biggest Problems Series. Annuity agents are not held accountable enough for the sale they make to you. Let me tell you what I mean.

Agents get paid handsomely for selling you an annuity as we mentioned before. And they typically get paid ONCE. There are different payout options and some annuities that pay agents once per year (much less than a one time upfront payout) but for the most part, agents get paid one time handsomely up front.
Why is that important? Because, where is the incentive to KEEP helping you? Your agent doesn’t have an incentive (other than getting more of your money later) to keep helping you. Once you’re fully invested, there’s no financial motivation to keep helping you. And if you’re in a long term annuity, you may never see your agent again.

Now, does this mean that most agents do take off after the sale for you to never see them again? No, not necessarily. All I am saying is that there is really no reason for them to hang around helping you. After all, they are not going to get paid again unless you buy another annuity or something else the agent is selling.

I think that needs to change. An agent should be paid a smaller up front commission and paid over time while you are riding out your surrender charge. Now, that would do a couple things. Number one, it would keep them accountable knowing that they would not get their full commission unless you stayed in the product. Number two, it would probably make them more conscious and aware of what they were selling you. Why? Because the pay would depend on maintaining a relationship.

Furthermore, the insurance companies should make this change to pay the agents over time. It would hold their agents more accountable. Sure, you can find some arguments against this but I guarantee it would do more good than harm when it comes to annuities.

I hope this helps and for more information, please visit us at http://www.AnnuityMD.com.

So what’s the next the next biggest problems with annuities? Well, the next biggest problem with annuities in my opinion is that they are rarely designed with the consumer’s best interest in mind.

Oh, you can argue with me all you want but there are typically 2 types of annuities. One that is good for the agent and the insurance company, and one that is good for the consumer. The problem is, the one that is good for the consumer is usually the one that pays the LEAST commission. And the one that isn’t as good for the consumer (long surrenders, lower rates/potential, etc) usually pay the highest commission.

It’s only obvious. The longer the insurance company can get the money for, the more they will pay (entice) the agent. The agent now has a decision to make. Does he offer a shorter annuity with less commission or the longer one with higher commissions. Unfortunately, the agent often chooses the latter.

DON’T GET ME WRONG. There are agents out there who do their clients well. There are also many who are enticed heavily by the big commissions. Greed is a natural human emotion. It plays part big time in the annuity sales process. If you don’t think so, you are sadly mistaken.

And if you take a look at annuities, the benefits can be good, however, sometimes they are loaded with conditions. For example, there is a 7% guarantee put on some variable annuities. It’s all smoke and mirrors. If you look at the conditions to get the 7% guarantee, it turns out to be a minimal (sometimes 3% or lower) guarantee. It’s not designed with the consumers best interest in mind.

And this holds true for many of the benefits. The above is just one example. So therefore, it’s best for a consumer to be fully educated about their annuities. We are releasing a FREE version of the Shocking Truths called ‘Annuities: The Warning Report.’ I’ve come to realize that many people won’t pay for good information. Therefore there will be a free version. No, it’s not everything but it’s enough to get your mind thinking about if you should or should not buy an annuity. It will be available at Free Annuity Report (just click on the words).

Hope this helps.

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What is the one of the biggest problem with annuities and the annuity industry? It’s simple. The training and requirements to become an annuity agent (for fixed annuities) are absolutely minimal. The barrier to entry is barely existen. I mean you can literally become an insurance agent over the weekend. Isn’t that crazy?

So why is that a problem? Well, it’s a problem because when you are dealing with an annuity, you are dealing with someone’s financial future. So what makes someone who can pass a simple insurance exam qualified to advise someone on their financial future? It is absurd to think that someone with so little qualifications has the license to do SO MUCH damage to someone.

This is one issue that needs to be addressed. In order to sell annuities, there has to be tighter regulations on what someone has to go through. There has to be a higher standard on the level of competency that is needed to sell annuities. The industry must raise the bar. The insurance industry must put agents through rigorous training before they are qualified to sell annuities.

Think about it. Doctors who advise you of your health have to go through YEARS of training in order to do what they do. There are many annuity agents who outearn doctors by multiple folds. Furthermore, they have the ability to do just as much damage to your future as an incompetent physician. And they don’t have to go through SQUAT.

I am pretty sure I could get a junior high student to pass the insurance exam in less than one week. If not, at a minimum I could get a high school student to do it. It is simply that easy and that is wrong!

So, if you wonder why your annuity agent didn’t tell you everything about the annuity he was selling you and how it would affect your financial future, maybe it’s because HE HAD NO IDEA. And that’s just the start. Stay tuned for Part 2 where I discuss another one of the biggest problems with annuities.

Ignorance ISN’T Bliss

Okay, let me start out by saying, whenever someone needs to make more money, they come up with a whacky idea for people to participate in. And this is one of them.

I ABSOLUTELY disagree with anyone who tells their client to get the cash out of their house to buy an annuity. It is absolutely stupid. LEt me explain. Yes, house money is tax deductible…yes, annuities are tax deferred. But when mortgage rates are low, so are interest rates on annuities. Their is simply not enough reward in beating the spread to make it worth it.

Now, for a younger client, MAYBE just maybe it may make sense. But for senior clients who don’t have a high risk tolerance, it is absolutely a bad move. Why oput yourself under added pressure and have higher payments. You retired to relax. And if you need to make more money, this may not be the best way to do it.

These are just my thoughts and I wanted to share them. I hope this helps.

Tony Bahu
CEO
AnnuityMD.com

Well, it’s not often I write about my own information but sometimes I just feel compelled to. Annuities are a difficult subject and it is hard to get good annuity help and annuity information. Therefore, I would like to inform you about the information we offer on annuities.

Annuities: The Shocking Truths Revealed is an unbiased look at what it takes to make a good annuity decision. It gives the good bad and the ugly and basically leaves almost no stone unturned. If you are facing a difficult investment decision, whether it is fixed, variable, or equity indexed, you must grab this information. It is timeless and priceless. I will let you read a comment (and I may post more later) about what one gentleman said about our information:

“These e-mail books were very informative. Shortly after buying them I received a few phone calls from agents trying to get my business, but after asking them a few of the suggested questions you pose in your book that one should ask, I understood that they were only interested in a sale and their commission.”

They persisted in sending me their material but that too was just the standard sales pitch and didnt really explain anything. I still have a lot to learn and understand, but your publications cut through the hype and has given me a lot more of an understanding on how annuities are invested and how agents pitch them. Thank You”

—C. Keefe, Berkely CA

To get The Shocking Truths, please click on Help with My Annuity.

Sincerely,

Tony Bahu
CEO
AnnuityMD.com

Humberto Cruz column
Fort Lauderdale Sun-Sentinel – Shoppers trampling and knocking down one another in their mad rush to the store. Employees blithely using office computers to shop online during work hours. Techno-addicts racking up credit-card debt in pursuit of the hottest — or is it the coolest

Jessica investigates
Telegraph – Many readers complain that the financial institutions that are keen to take their money are less willing to answer legitimate questions. Sometimes the power of the press, in the shape of Jessica Gorst-Williams, can help Couple have 5,200 a year

Jim Donaldson: For Quigley, fun remains the name of the game
Providence Journal – The question, which Dana Quigley could see coming from even further than the distance of a John Daly tee shot, was: “How can you possibly top the year you had in 2005? His answer: You don’t. You don’t even try. And if you don’t — if you just go out

Mishandled nest egg can crack your retirement
Chicago Tribune – A million dollars may sound like a lot of money until you have to make it last for 30 years of retirement. Figuring out how to stretch savings over a lifetime can be tough for many people once they stop working. The oldest Baby Boomers, who are

Hanover Insurance sees loss from unit sale
WRGB – (New York – AP) Hanover Insurance Group expects to take a 457 million dollar loss in 2005. The Worcester-based company cites the sale of its run-off variable life insurance and annuity businesses to Goldman Sachs. Hanover announced the deal in

Firesale!!! This opportunity will only last until January 31st!!! You must buy this annuity now or you will never have this opportunity again. Have you ever heard this?

Yesterday, I received a call from a lady who was in a hurry to buy an annuity. I immediately asked her why she was in such a hurry. She proceeded to tell me that a TIAA Creff represetnative told her that one of their annuities was only going to be available until the end of the month and that she would have to hurry if she wanted in. She insisted that it was very important for her to make a decision soon because of this.

Now, let me just explain a couple of things. First of all, investing/saving is not something you should make hurried decisions on, particularly when purchasing annuities. Next, and more importantly, ‘great opportunities’ are ALWAYS available in the investment world. For the most part, fireslaes are really monthly contests in disguise. I can honestly say that without feeling guilty in the least bit.

And for one more important point; companies like the one mentioned above are in busines because YOU invest your money with them. The bottom line is, if they can’t take your money, they won’t stay in business. So if one product is truly disappearing, another one will show up right away to take its place…particularly if it attracts a lot of money. Do you get it? Whether it’s a fixed annnuity, variable annuity, or indexed annuity, or any other investment for that matter.

The bottom line is, there is NEVER a reason to be in a hurry to make money decisions. Opportunities come and go and there is always something else to invest in. If you believe you are going to miss out on the next Google, and you make your decision based on that, you could get yourself into a lot of trouble. Take your time, especially with annuities.

For more help with annuities, please click on annuity help.

Ignorance is NOT Bliss.

Tony M. Bahu
CEO
AnnuityMD.com

It is inevitable that everyday I get the question—Is the equity index annuity a scam? Here is my response. First of all, anything that is misunderstood is always criticized. It is inevitable that people will take shots at things they don’t know anything about. It has always happened and it always will.

Let me give you a small clue of the index annuity. It is a fixed annuity. You can’t lose money in it due to MARKET fluctuation. YOu can lose money in it if you try to get out early due to penalties. Yes, you can make more money that a pure fixed annuity but yes you can make less. Yes, it has a minimum guarantee. No, it could probably never outperform a strong bull market.

The reason it is thought of as a scam is not because of what it is. It’s because of what people THINK it is. It is sold as a stock market alternative…well IT’S NOT. It is not a stock market alternative but when someone buys it because they think it is and it underperforms, it is thought of as a scam. Furthermore, many times, the annuity agents themselves (no disrespect) have no clue how what they are selling works. Therefore, they give false expectations to the clients and then the client ends up on the bad end of the deal. Sometimes, it’s all about expectations.

Equity index annuities, like any other vehicle can be good and can be bad. It all depends on what a person is looking for. They are fixed annuities designed to provide the POTENTIAL to give a little bit better performance than traditional fixed instruments at the time. They are not designed to be stock market alternatives.

Unfortunately most people just don’t understand how they work. The bottom line is, they are not a scam. However, if you purchase one thinking it’s going to do something it’s not, you are going to believe it’s a scam. For more education read about click on Annuity Help. You will discover more than you ever needed to know about annuities. Furthermore, the Gold Package contains an entire documentary on Equity Index Annuities.

Remember, Ignorance is NOT Bliss.