Sales people 'pitching' Annuities

Q. Jeff, I found your web site via google.com. I've printed out some of your articles, particularly the one from last November on the 'next scam'--indexed annuities.

I am 66 and my husband is 76. We recently had a face-to-face meeting with a gentleman we met at a financial seminar for seniors, regarding the purchase of an index annuity--his suggestion for the 'safe' and 'simple' process you talked about. He is an independent agent under the umbrella of a company in San Diego called *****.

Currently we have all of our assets (aside from our house) in the
market. The mutual funds we've purchased have performed well. We work with a conservative broker who we've been with for 20 years. Granted he's a stock broker, however, not an independent advisor.

The insurance advisor I spoke about above, suggests we put my SEP-IRA into an Index Annuity in order to have a platform of safety for our later years. However, after all I've read on the Internet (an extensive search), including your articles, I am reluctant to proceed even though it SOUNDS good when presented in person. Such sales people do know how to 'pitch' their products!

I'm thinking that the best route for evaluating our financial goals is
to meet with someone whose job is to advise only, someone who does not sell products, but merely charges for his or her consultation.

What do you suggest?

Thank you for offering to answer questions.

A. I congratulate you on your desire to research the 'advisors' suggestion. That inherent skepticism will serve you well as you approach investing--whether you're approached with an EIA or any other product.

I would be happy to provide you with some specific recommendations, free of charge. I would let you know the advantages and disadvantages of any current investment positions you have, review your allocation in terms of your needs and comfort levels and suggest various alternatives for you to consider.

The best alternative may be for you to stay with your existing broker. If so, I will let you know. I privately manage money for a small number of clients using a proprietary method I pioneered that provides many of the protections of an EIA but there are no set-up fees, no time committments, no commissions, and no surrender fees.

For some people, my method is a great alternative to traditional mutual fund buy and hold investing--but it's not for everyone and I understand that.

Of course, there's no obligation for me to do this review. The main purpose of it is to give you an unbiased review that will give you the facts to make an informed decision.

What I would need to know would be the current investments you have. If you have IRA money and non-IRA money it would be helpful if you would tell me which investments and amounts were in each.

You've already mentioned your ages. Do you look to your investments to provide current income?

Additionally, at your request, I can also provide a basic review of your overall situation. With today's complex IRA and estate planning laws, there are many small things that people can do that will save them a fortune over the long-run--things that aren't necessarily investment related. For instance, the beneficiary designations on retirement accounts are a major area where people unknowingly lose tens of thousands of dollars.

Just let me know, I'm here to help any way I can. Again, you've done the right thing in researching any advisor's recommendation!

Your posted comments on this and other questions are welcome.
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