Bad News for Investors. This just released by Investment News;
Fixed indexed annuities inked their best-ever sales year in 2015, closing the year with a record sales quarter and continuing a steady rise in popularity in the last several years that’s occurred as variable annuity sales have floundered.
Indexed annuity sales totaled $54.5 billion in 2015, a 13% increase from $48.2 billion in 2014, according to the LIMRA Secure Retirement Institute’s fourth-quarter U.S. Individual Annuities Sales survey.
The record sales cap off the eighth consecutive year of growth for indexed annuities, which saw $25 billion in sales in 2007.
In other words — As the trap door opens, investors fall into the pool of annuity-selling/commission-loving sharks. What a shame. Market volatility can do a number on investors when they are unsure if a better investment strategy exists.How about a strategy that sells stocks, but holds bonds and cash when appropriate? And oh, by the way, at one-third of the cost.
That’s right! Annuities on average cost investors 1-2% more in fees per year. Over an investor’s lifetime, this can add up to be upwards of 21% of their retirement savings — This is what Liberated Investors understand and know to avoid.
Be sure to seek out an investment approach that offers you downside protection without paying twice as much. Avoid annuity agents that are riddled with conflicts of interest and who are seeking that hefty commission. Once markets go back up, they’ll be sitting with their feet up on the desk while you are not participating. Just say NO annuities.