However, with some due diligence and research, you will likely find that annuities are complex and fraught with pitfalls. In our view, these products are seldom in investors’ best interests and can actually make achieving your long-term investment goals more difficult.
Fisher Investments does not sell annuities. Why? We believe almost anything you can do with an annuity can be done better with other investment vehicles. We have worked with countless investors who were sold annuities that did not meet their needs. Annuities are often complicated products that promise many things, but their long-term outcomes can be disappointing or downright dangerous.
Common Pitfalls of Annuities
Layers of Fees
Limited Growth Potential
How We Can Help
Over the years, we have helped investors evaluate thousands of annuity policies. In many cases, we have found that these policies are not a good fit to achieve investors’ longer-term goals. In response to the frequency with which we saw annuities failing to fulfill investors’ goals, we developed an Annuity Evaluation Program.1 We designed our program to educate investors about the annuities they own or are considering. We want to help investors differentiate between contracts that fit their needs and those that don’t.
In our Annuity Evaluation Program, you work with a licensed Annuity Counselor who will take the lead in gathering the necessary information. Our fact-finding and analysis can offer insights on income, fees, penalties, death benefits and much more.
Ultimately, you may find peace of mind in your annuity strategy, or decide that it is time for a change. Bottom line: You deserve to know exactly what you are getting into and whether it is the best way to achieve your long-term financial goals. If you decide that it is time for a change, we help make the annuity conversion process as simple and painless as possible.
1Annuity Fee Credit Terms & Conditions
Limited offer: Fisher Investments reserves the right to cancel, suspend or modify the offer at any time and for any reason without notice.
Eligibility: The offer is available only to qualified investors who become clients of Fisher Investments and who surrender an annuity and transfer the proceeds to be managed by Fisher Investments. Nothing in the offer infers any right on any person to become a client of Fisher Investments. Fisher Investments reserves the right to refuse or terminate any person as a client for any reason. Any request to participate in the offer is subject to acceptance by Fisher Investments.
Conditions: The maximum surrender cost that Fisher Investments may agree to pay will depend on the actual surrender cost or exit/liquidation charge of the product (excluding capital gains and other taxes) and the value of the total portfolio transferred for management by Fisher Investments. Any portfolio already managed by Fisher Investments will be excluded for the purpose of determining the maximum surrender cost to be paid.
Any surrender cost that Fisher Investments may agree to pay will generally be reimbursed in the form of a credit to the Fisher Investments quarterly investment advisory fee. Installments for ERISA plan assets will only be credited to the Fisher Investments’ managed account that contains the ERISA plan assets. Installments are subject to adjustment based on withdrawals of assets from Fisher Investments’ management.
All payment obligations will immediately cease if the client relationship with Fisher Investments or the account receiving payment is terminated for any reason before the end of the payment period and no further installments will be paid. Payment periods can last over ten calendar quarters or longer.
Risks: There is no guarantee any proceeds from any product mentioned above managed by Fisher Investments will achieve any specified level of performance, or that performance will be any higher than what could be achieved within the product. Investing in securities involves the risk of loss. Past performance is no guarantee of future returns.
The contents of this site should not be construed as tax advice. Please contact your tax professional.