Variable Annuity Explained Simply (DON'T BUY!)

If you are looking into a variable annuity or are wondering how to read a variable annuity contract this video is for you. In this video I explain variable annuities SIMPLY so you can make an informed decision about your personal finance investment strategy. I also explain the difference between variable annuities and fixed annuities and why I don't recommend purchasing a variable annuity product.

Financial freedom is found through discipline

Timestamps:
00:00 - Variable annuities vs fixed annuities
01:44 - Advertised benefits of a variable annuity
07:38 - The negatives of variable annuity products
12:50 - Why you should talk to a Financial Planner

In this Video, I explain Variable Annuities: What You Should Know. Variable Annuity Explained (2019). I cover the typical fees associated with variable annuities, the differences between variable annuities and the other types of annuities, and how a variable annuity could provide for a consistent and predictable stream of income for your retirement. Additionally, I address the questions you should ask before buying a variable annuity. Discover the truth about variable annuities: what is a variable annuity? Understand the harsh truth about annuities!"

#annuity #investmentstrategies #financialfreedom

[chisholmfinancial]

Hey, hope you found this video helpful! If you have any questions you would like me to cover in a future video reply to this comment 👇

[KevinBeee]

I used to work as an admin. assistant for a small broker-dealer outfit, who did 90% of his business by selling variable annuities and whole-life insurance policies. I know first hand how complicated these products can get (and what an absolute MESS of paperwork is involved in issuing them), but at the time I didn't really have the financial education to properly evaluate exactly what it was we were selling.
This video definitely helped put things into context--namely that variable annuities were almost certainly a bad retirement strategy for a good number of those clients. 😔

[wisconsinsculler]

Thanks for the helpful video. Our gut feeling on these agrees with your assessment.

[lsrxc]

Thank you for this information, especially your honest experience when working with these insurance companies. Although we did invest in a annuity with guaranteed income and death benefits, there is a level of comfort in knowing there is something coming in regardless of market conditions.
Now our wealth manager, who works on commission, is pointing me to convert a portion of my 401K (I'm 59-1/2) to another annuity. Her claim is that she knows our risk tolerance and life expectancy. We've worked with her for years, and honestly because of the confusing jargon, I just let them go with the reccomendations. The results are good enough where I can target retirement one year from now, but this information helps me be better armed in redirecting to a self guided brokerage account for better optimization, and more importantly, control and liquidity.

[franceswu]

The baseline of minimum guaranteed income won’t be influenced by fee. The fee only influence the cash value. There two numbers are different.

[gplus]

I have been looking at RILA's. Although, it is a variable annuity, it is indexed with a 10% buffer and a 130% participation rate. Many new changes are constantly being introduced in the annuity market. It gets hard to analyze a particular annuity platform for the average person. Will you have any video's regarding RILA's?

[dkong]

Excellent presentation. Knowing what I know now about variable annuities would have saved a lot of time and hassle. Unfortunately, I took the advice of a so-called fiduciary financial advisor (since fired) so once I figured out what a bad investment it was, I cancelled it. Yes, penalties were paid, however, the cost of the penalty is far less than staying with it. Lessons learned.

[IlluminatingWealth]

You are giving advice without knowing the client information by your title (don't buy). I suggest removing that to be compliant.