Most people who own annuities never went shopping for annuities. They were sold to them. With all investment products, you must always think about who is making the money, how much money they are making and is there any conflict of interest. Whenever someone suggests an annuity to you, that is when your radar should immediately go up. Something that most people who own annuities do not know is that they pay the highest commission of any investment product, by far!
This is just the tip of the iceberg when it comes to why Lou Scatigna, CFP® despises annuities. In this segment from The Financial Physician, he provides a full explanation of what annuities actually are and who benefits from them the most (aka the financial salesperson).
Listen to The Financial Physician, where Lou Scatigna, CFP® talks money, markets, politics and other topics that affect your financial life.