Why do pundits hate indexed annuities?

This post features an installment of my company’s educational video series on why the pundits seem to hate annuities.

The purpose of these videos is to help clear up misconceptions by producing short, simple, entertaining explanations of how the various types of annuities work. These videos are intended to be conceptual more so than “in the weeds” technical. So share them wherever you think it might help.

In this video, we look at indexed annuities.

Related: Why do the pundits hate annuities?

Our last video demonstrated how the value of a variable annuity can go up or down with their underlying investment funds. Of course, some people are more risk averse than others. They are not comfortable exposing their money to the risk of any loss. So this video illustrates how indexed annuities avoid losses by trading off risk versus reward. Perhaps the pundits think the trade-off is too costly or maybe they just think it is wrong to be so risk averse. You be the judge:

Our next video article will look at the risk versus reward tradeoff of fixed annuities. After that, we’ll  follow up with videos on what we think the pundits really hate- It’s not the annuity they hate, it’s the annuity commissions!

In the meantime, tell us what you think in the comments and give us any ideas on topics for future videos.

See also:

Do you know these annuity terms?

Are annuities doomed in 2017?

7 secrets to selling annuities

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