Customer Reviews

The Truth About Buying Annuities

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This book is overwhelmingly negative towards annuities. Although, I think that many of the author's (Weisman) points are valid they are mainly geared toward older variable annuities, with particular attention given to equity indexed annuities and annuitization. Not one of the 50 chapters is devoted to living benefits, which make today's annuities most attractive.

I am very disappointed in this book. Nothing of what the author outlined is factually incorrect, but it is written as if he looked for all the negative aspects and published them. To write a book title " The Trust About Annuities" in 2008 and not even mention living income benefits (GMIBs, GMWBs, etc) seems negligent.

This author omits the most important facts about today's Annuities.
The guaranteed principle and income riders.
People who took Steve Weisman's advice to stay away from annuities and lost 40% to 50% of their life savings in 2008 should be upset.
For a fee of .35% per year, which is just 350 per 100,000 . Your principal could have been 100% protected from loss as long as you don't withdraw more than 10% per year and hold your annuity for 7 years.
Another very popular rider that has also been available for years is called Lifetime HD 7 and has a .75% yearly fee.
This rider locks in market gains EVERY DAY and guarantees a 100% return of principal after 10 years.
It also guarantees a 7.2% compounded return for your retirement value .It guarantees your retirement value to be 200% in 10 yrs and 400% in 20yrs (this value is what you can base your 5-8% lifetime withdrawal on. You cannot walk away with this amount as you can with your principle.)
When you start your lifetime withdrawals they can never stop even if you run out of principle.
Your income can also continue at your death for your spouse and double if you enter a nursing home or become disabled.
For this author to completely omit these riders in his book shows he may be biased and have an anti annuity agenda.

The contracts on insurance products are written for the benefit of the insurance companies, not the insured. This is the first book I have read that simply and yet completely explains a complicated financial product that most people buy without understanding what they are buying. Annuities are an area where there has been great abuse by salespeople; I wish I could make this book required reading before anyone could by one.

Retirement is expensive, and making the right decisions is incredibly important. "The Truth About Buying Annuities" is a guide to avoiding bad choices in finances when planning one's retirement. With cogent advice on minimizing risk when investing in annuities, avoiding the hazards embedded in the fine print, identifying and utilizing new options that are emerging in the modern market, and so much more, "The Truth About Buying Annuities" is solid and recommended reading for anyone planning the finances of their retirement. An ideal addition to the growing library of financial and money management literature, "Buying Annuities" is an important acquisition for personal, professional, and community library instructional reference collections.

The bottom line is that (like anything) annuities can be good or bad depending on persepective. What you're essentially buying is guarantees from an insurance company. What it costs you is the potential for higher returns and (possibly) liquidity. The book sounds pretty biased to me and doesn't seem current with the types of annuities that seem to be available on the market.

Overall, I wouldn't waste my time.

First of all, the book is good reading. Full of information and interesting concepts. However, annuities are not for everyone. Only buy this book if you have an annuity or thinking about buying an annuity. An Annuity is basically mutuals funds wrapped in insurance!...If you love mutual funds and love insurance---this book is for YOU!..;-D