Global View Investment Blog

Wealthy People Don’t Own Annuities (because they are educated by fee-only advisors)

Because everyone is a human being seeking to avoid risk, successful people sometimes get conned into buying annuities. Just this month we saved a family over $50,000 in unnecessary fees by reducing the cost of their annuities by over 3% per year. If you have an annuity, we can help!

Our team at Global View is fortunate to work for great people in the Carolinas and Nationwide. Our client base is made up of smart people who have made a lot of great choices.

But because insurance salesman are outstanding salesmen they use fear of loss to conn investors into building monopoly money wealth with so-called guaranteed income benefits (that don’t hold up under close scrutiny)!

Fortunately, when we shine a light on this, we help investors (usually starting in their 40s as rapid accumulators – we get a lot of M.D. clients) make the right decision. Because how can any one person know? Fortunately, we have seen this enough to tear it apart!

Clients who have demonstrated success and accumulated over $2 million rarely own annuities.

Annuities are sold because the buyer trusts the insurance salesman, the insurance salesman highlights the risk of loss, and the promise of future income is so hard to understand only a lawyer can get it.

Which means you need an expert (with no skin in the game who can’t get a commission) to determine if the annuity makes sense for you.

We can highlight many instances of unscrupulous insurance salesmen. We find it especially galling – the insurance salesmen generally give every client the same product. It is a one size fits all one and done, thank you for the commission kind of relationship!

And our clients are not interested in this “one night stand” kind of relationship.

Because everyone is different. For extremely risk-averse investors, who otherwise wouldn’t take any risk, these products might make sense. But imagine these investors have access to a team of investment professionals whose mission in life is to avoid losing money that you can’t make back!

Which means … it is a rare case indeed that a variable annuity with guarantees makes sense!

Because so many investors already own these high cost annuities we have developed an annuity rescue strategy. Using this low-cost strategy, we can make a tax-free exchange from your current high cost annuity potentially saving you tens of thousands of dollars and providing access to better investments THAT WE CHOSE INSTEAD OF THE INSURANCE COMPANY CHOOSING. But that’s another topic.

To learn more about one of the tools we use to rescue annuities, watch this video (and why you are there like our YouTube channel):

Ken Moore

Written by Ken Moore

Ken’s focus is on investment strategy, research and analysis as well as financial planning strategy. Ken plays the lead role of our team identifying investments that fit the philosophy of the Global View approach. He is a strict adherent to Margin of Safety investment principles and has a strong belief in the power of business cycles. On a personal note, Ken was born in 1964 in Lexington Virginia, has been married since 1991. Immediately before locating to Greenville in 1997, Ken lived in New York City.

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