Quote:
Originally Posted by Roaddog53
If you want to know more about annuities AND Financial Advisors, read the book I have mentioned in another thread regarding Financial Advisors and what they try to get you to buy. It is a short (73 pages?) but excellent read, free in Kindle, and describes them from a retired Financial Advisor who got tired of how firms operated with their clients.
I confronted one of my past advisors on some of the questions he remarked in the book. Needless to say he got defensive and tried to say he was told how good they are in their training. He is no longer my advisor.
"Beware of Your Financial Advisor" by: L. T. Drake
Please let me know how you feel after you read the book on annuities AND other investments with companies please. It opened my eyes for such a short read.
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I am a Chartered Financial Consultant and spent 25 years in the financial services industry, mostly as a field manager, hiring and training advisors. The book may be accurate, as I was often disgusted with the tactics some reps used in selling financial products in general and annuities in particular. I insisted that our reps be trained to present our products in a fair, balanced way, and fired reps who were found to be wanting ethically. In the late nineties new regs were passed by the SEC and insurance commissions that require the Principal (which was me) in the office to review every transaction involving a security product to assure suitability. It was a massive amount of work, but it certainly provided oversight that prior to that had been lacking. The company I was with, New York Life and NYLIFE Securities, developed questionaires for the client that would indicate what, if any, products might be suitable for them based on age, risk tolerance, and time horizon. We would have to review those questionaires and they would be required to be kept in the clients file. We did unannounced file reviews on every rep once a year to assure compliance with the rules. I am proud of the many clients I helped along with my reps, and never, to my knowledge, did we ever sell someone a financial instrument which was not suited for them. That is not to say that all were happy or successful, but that is the nature of the risk involved in investing. Annuities have their place in the realm of financial products and often provide a relatively good return along with some guarantees and safety that are not available in other financial instruments. Always ask tough questions of anyone who advises you, and seek information online or elsewhere before you trust anyone with your hard earned money. I am certain Bernie Madoff seemed very trustworthy!