The Need for AnnuitySpeak

After spending twenty-five years as an entrepreneur, I set out last year to create a business which would help others in a meaningful and lasting manner. With baby boomers beginning retirement and continuing to do so for another twenty years plus, the issue of financial security in retirement loomed as prominent – or should I say, “HUGE.” Of course, when the late 2008 financial crisis wiped out nearly half of many people’s retirement plans, the US economy literally teetered on bankruptcy, and the government responded with trillions of dollars of “bail out” spending and “clunker for cash” programs– I knew that retirement security would be an enormous challenge for the foreseeable future. The question I asked was, “What in the world can I do about it?” With a financial background, and three generations of attorneys and judges preceding yours truly, I have an unusual blend of financial credentials and the ability to read and understand contracts and “legal speak”– something twenty years of being CEO/COO/President and Chief Dishwasher will do for you. (Disclaimer: I am not an attorney, which is a good thing to some people and a bad thing for others. I’ll let you be the judge.) While examining the financial hurdles facing current and future retirees, I discovered insured annuities. “Aha,” I thought. I can make a difference here.

Granted, I am not your run-of-the-mill “twenty-year insurance annuity guy.” But I believe that is precisely what gives me an objective, “fresh look” at the industry, the need for its products, but, also, the ability to identify major problems it encounters in reaching retirees, today – some of whom badly need these products and the “market protection” they offer. What I have learned (and continue learning), and believe has great value to others, is this: (1) annuities can be extremely complicated; (2) most independent insurance agents (who sell the bulk of annuities) have a fairly superficial understanding of crucial financial and contractual issues governing these products (the focus on sales and large commissions greatly overshadows the focus on product knowledge and understanding these insurance products); (3) there are a ton of general media and market misperceptions regarding types of annuities, forms and functions, the drastic difference between variable annuities and fixed or fixed indexed annuities; and, the extreme difficulty of finding objective, clear guidance regarding these products (i.e. what purpose they best serve, who needs them, and when/why a given product is a good fit to secure someone’s retirement.) Let me state very clearly that I analyze, review and discuss only fixed and fixed indexed annuities which are immune to market risk – NOT variable annuities. Variable annuities are invested in the financial markets, behave in many respects like securities, and are not the “safe money” vehicle which I believe is most appropriate for retirement planning. Thus, this entire web site, all text, audio or video commentary/analysis is unrelated to variable annuities!

The list of advisors with an inherent and monetary bias toward (or against) annuities is endless. The number of independent and knowledgeable annuity advisors is small and difficult to uncover. Hence, I spotted my niche and an opportunity to fulfill my own personal mission: (a) a desire to help others (particularly retirees or soon-to-be retirees without time to rebound from major financial mistakes); and (b) an opportunity to do some things I have always loved (read and write, perform financial analysis, speak and opine, having descended from a very long line of “opiners,” and even compose TV or video blogs (appealing to the slightly “hambone” tendencies with which many of us struggle, if the truth be known).

All of this gave birth to The Annuity Foundation and its educational extension, AnnuitySpeak, which is my independent analysis of annuity products, carriers, and the many financial factors which weigh into the efficacy of a given annuity for a given person, time and situation. My deepest desire is to offer the unadulterated truth (as best I can glean) about annuities in general and an annuity product or type, in particular, and in terminology and verbiage which the average person can understand and digest. If I blabber profoundly in financial, legal or insurance jargon, while making your eyes glaze over, what good have I done?

Lastly, too many annuity transactions appear to have landed in the “sales” category, in which an insurance salesman needed a commission and found one. I don’t begrudge anyone a commission for which they have worked hard (as I have myself), but I do hope that increasingly more annuity transactions will be between educated and well-informed agents and clients who both understand why a particular annuity will assist in solidifying the client’s financial future.

I hope and request that you will blog your comments and feedback on this web site, and other social media forums which link back to the site, so that I can “fix what’s broken,” clear up any confusing issues, and provide you and your family with the information you need to secure your retirement.

Wishing you a prosperous retirement!

Dean