subject: Annuity Scams Part 2 [print this page] Annuity Scams Part 2 Annuity Scams Part 2
Financial fraud is a tragic part of the retirement investment world in general. The longest running case of fraud in America happens to be social security since the government has promised to invest social security taxes in a trust fund and use those funds to pay retirees.
Sadly, nearly half of all collected taxes are distributed to other programs, leaving an un-funded liability the responsibility of future taxpayers. Bernie Madoff was recently caught doing something similar and is looking at spending the rest of his life in jail.
Because annuities are a widely misunderstood financial product, cases of fraudulent sales practices receive a lot of attention and cast a dark shadow on the industry as a whole. Do your homework, and you will find many cases of greedy sales people targeting seniors with complex and unsuitable products.
The responsibility for these activities is often shifted to the insurance company. All insurance companies that issue annuities back up their products with the fine print hidden deep in the contract. This information is often hard to find so many agents don't even know they are pushing unsuitable products on nave investors. So, there is a lot of work each company needs to do to educate their sales force to make sure this happens less in the future.
The annuity industry, like any other in the financial world, is represented by a myriad of products. Some of these are great and some are flat-out horrible. So, what is an investor to do? The answer is education.
Reading and interpreting a single contract is best done with a law degree so it can be as complicated as you want to make it. On the other hand, if you can find the right resource, an in-depth understanding of annuity contracts will come easily and without a big time commitment.
Remember, it took a lot of time and hard work to build your nest egg so the proper placement of those assets deserves some attention as well. You must verify that your best interests are being protected. When it comes to that, trust no one but yourself.
I have noticed the major pitfalls that come when uneducated salespeople and trusting consumers meet. It is disheartening to witness such simple mistakes that often lead to serious financial problems in the future. I can wait no longer to step up and help as many people as possible. Annuity Straight Talk was launched to help consumers identify the important components of annuity contracts. This is an absolutely necessary step every person should take to protect themselves from misinformation.
Visit us at AnnuityStraightTalk.com and read the report so that you can become educated enough to meet with any advisor on a level playing field. Learn to ask the right questions and it is likely that you will know more than most advisors you meet.
