I read an article in your publication about the bad apples in the industry. I have found that these (bad) agents can be banks, tax attorneys, CPAs, insurance agents or sales people at brokerage firms. But these extreme cases are but a small part of the problem and usually the only ones that come to light.
After almost 20 years in this industry, what I see more than 50 percent of the time and, in my opinion, is just as much of a disservice is when these and other people who sell annuities fail to fully disclose information regarding caps, surrender charges, when and how they are able to access the monies, etc., along with telling clients that their annuity grows tax "free" and that there will be no taxable event or consequence whenever they or their beneficiaries access the money.
No doubt they are simply misleading people in order to "make a sale," but they also just don't know how these financial vehicles work. I believe this constitutes upwards of 80 percent of people who are licensed to sell annuities.
With annuities, like any tool, you have to have the proper one in order to achieve the results that you are looking for. In some cases an annuity may be the worst thing to put your client in or it may be the very best.
It is imperative that we, as agents, strive to gather as much information as possible so as to make a prudent recommendation, not just for an annuity, but for any other financial instrument we utilize in our practice.
–David A Bobbitt, Senior Financial Concepts, Inc.
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