Thursday, March 02, 2006
Retiring Boomers Advised To Be Aware Of Annuities
Five years ago, the Johnstons went to a Durham financial planner. They wanted to sell several properties, defer their taxes and convert their money into a steady retirement income.
The planner sold them an annuity, an investment vehicle wrapped in an insurance policy that lets invested assets appreciate tax-free until drawn upon. He promised an 18 percent return, high but not unreasonable, Ed Johnston thought. "This guy talked like it was the greatest thing since white bread," he said.
The planner didn't explain that there would be a 7 percent sales fee or separate ongoing management fees, the Johnstons said. Nor did they understand that the variable annuity they were sold was linked to a speculative growth fund that lost money as the stock market tanked. Five years later, the Hillsborough couple estimates that they have lost about $600,000 through the annuity and a series of insurance products tied to it.
The Johnstons, now in their 70s, are working feverishly to win back those lost resources, instead of lolling in easy chairs as previously planned.
Retiring Boomers Advised To Be Aware Of Annuities
Source: Insurance News Net
The planner sold them an annuity, an investment vehicle wrapped in an insurance policy that lets invested assets appreciate tax-free until drawn upon. He promised an 18 percent return, high but not unreasonable, Ed Johnston thought. "This guy talked like it was the greatest thing since white bread," he said.
The planner didn't explain that there would be a 7 percent sales fee or separate ongoing management fees, the Johnstons said. Nor did they understand that the variable annuity they were sold was linked to a speculative growth fund that lost money as the stock market tanked. Five years later, the Hillsborough couple estimates that they have lost about $600,000 through the annuity and a series of insurance products tied to it.
The Johnstons, now in their 70s, are working feverishly to win back those lost resources, instead of lolling in easy chairs as previously planned.
Retiring Boomers Advised To Be Aware Of Annuities
Source: Insurance News Net
Permalink posted by armandn @ 7:53 AM 
 |
 |  |
  |
