frayne
Thinks s/he gets paid by the post
Don’t shoot me yet, just wanted to relay a short story about fixed index annuities. Recently got a mail invitation for a sit down and review from an insurance company in exchange for a free $100 meal card in a couple of middle of the road restaurants, Outback Steak House, Carrabas, Bonefish Grill, etc. This was my second invitation as I threw the first away but I thought, what the heck, I would take them up on the offer. I called and an appointment was set up. I met with the gentleman for about two hours and I am sure he was glad to see me go, as I had him explain in detail the nuances, costs, how he got paid, etc. I ended the meeting saying there was too much information to digest at one sitting and I would get back to him. I filled out some form in order to get my meal card sent to me in the mail, he did offer that I could pick it up on a return visit. I explained mailing it would be the best method of delivery. Now I consider myself to be pretty much of average intelligence and the information he presented was very professional but somewhat confusing, reset options, bonus set up, high water marks, cap rates, participation rates, crediting methods, etc. and of course he didn’t take his cut out of the mix as he was paid by the insurance company who he is basically an agent or broker for.
So this evening the Mrs. and I are walking around the neighborhood and a friend pulls up on his bicycle and is telling us what a good deal he got on this annuity he just purchased ! I asked him about some of the criteria, surrender time/penalties, fees, what index is mirrored, etc. and of course he didn’t know, except that it was a good deal and it was insured by the FDIC ! This person is no dummy, college educated, retired early but has no clue when it comes to financial instruments. Not saying he got a good or a bad deal, just that he bought something he didn’t understand and still doesn’t.
Maybe I am missing something here but it seems like the financial industry will always come up with some new instrument to get in your wallet and there are plenty of people that will happily hand over a chunk of cash based on a proven sales pitch.
Forgot to ask him if he got the free lunch.
So this evening the Mrs. and I are walking around the neighborhood and a friend pulls up on his bicycle and is telling us what a good deal he got on this annuity he just purchased ! I asked him about some of the criteria, surrender time/penalties, fees, what index is mirrored, etc. and of course he didn’t know, except that it was a good deal and it was insured by the FDIC ! This person is no dummy, college educated, retired early but has no clue when it comes to financial instruments. Not saying he got a good or a bad deal, just that he bought something he didn’t understand and still doesn’t.
Maybe I am missing something here but it seems like the financial industry will always come up with some new instrument to get in your wallet and there are plenty of people that will happily hand over a chunk of cash based on a proven sales pitch.
Forgot to ask him if he got the free lunch.