Five Things Your Annuity Seller Won’t Tell You

Some annuity sellers don’t fully explain the costs and tradeoffs, so here’s what to keep in mind if you’re considering buying an annuity.

A husband and wife sit at their dining room table talking with a financial adviser.
(Image credit: Getty Images)

According to LIMRA, the insurance association trade group, annuity sales totaled over $310 billion in 2022, up 22% from the prior year. Annuities cover a broad universe of financial products, can provide either fixed or variable returns and offer a dizzying array of riders that can provide additional benefits.

Remember, annuities are simply a tool for transferring risk. As with any investment solution, there are tradeoffs you should weigh in determining whether the product recommendation best accomplishes your goal — and at what cost. We advise consumers to keep that in mind, because some annuity sellers don’t fully explain the costs and tradeoffs.

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Mike Palmer, CFP
Managing Principal, Ark Royal Wealth Management

Mike Palmer has over 25 years of experience helping successful people make smart decisions about money. He is a graduate of the University of North Carolina at Chapel Hill and is a CERTIFIED FINANCIAL PLANNER™ professional. Mr. Palmer is a member of several professional organizations, including the National Association of Personal Financial Advisors (NAPFA) and past member of the TIAA-CREF Board of Advisors.