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November 30, 2004
What's Wrong With Variable Annuities?
"Variable Annuities are sold more aggressively than fake Gucci handbags on the streets of New York City." 1
My guest on the radio show Saturday was Gary Schatsky, Chairman Emeritus of the National Association of Personal Financial Advisors, or NAPFA. Gary and I discussed at length the reasons variable annuities are terrible investments for 99.9999% of the investing population but such a great deal for the people selling them.
This was the second time I aired this interview. Both times I was overwhelmed with people asking where they could get copies or transcripts of the interview. These requests come from three groups of people: 1) Those that already own variable annuities and wish they didn't; 2) Those that are being pushed hard by a salesperson to put their money in one; and 3) Lawyers who have suits pending against the insurance companies related to the sale of these abusive and grossly overpriced products.
“Great spirits have always encountered violent opposition from mediocre minds.”
~Albert Einstein
It seems there just aren't that many people talking about what a bummer variable annuities are for investors. And those of us who are find ourselves universally cursed by those who sell them. But what would you expect? By educating you on the facts, I am threatening a very lucrative business for them.
Well, get out the rotten eggs and rancid tomatoes fellas because I am going to keep shouting about your malfeasance until I have no breath left. It is a travesty. It is a rip off and a mockery of the trust people place in you. They are bad investments. Period.
For those of you who emailed me or called asking for a copy of the show, I will do you one better. Use the link below to listen to the interview in its entirety, not just the portions that made it into the show.
SOURCES:
1. SmartMoney Magazine, "What's wrong with variable annuities?"
http://www.smartmoney.com/retirement/investing/index.cfm?story=wrongannuities, 30 Nov 2004
2. Gary Schatsky, interviewed by author 01 Nov 2004, telephone interview, Dallas, TX.
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
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Kim Snider is an author, speaker and host of Financial Success Coaching, Saturdays at noon, on KRLD Newsradio 1080, Dallas - Fort Worth. This blog is primarily devoted to empowering individual investors with information to help them be good stewards of their money. Above all, it is about achieving true financial success. Kim's book, How To Be the Family CFO: Four Simple Steps to Put Your Financial House in Order is in bookstores now. Order yours from Amazon or other fine booksellers today.
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