Good day old pals! Did you know that journalists have the same issues about fixed index annuities (FIA’s) as this bird has been stating for months! Long surrender charge periods and the esoteric product structures are just a couple of the concerns I share with the media who reports on these products. Add in the misrepresented income riders that many agents and few buyers comprehend and FIA’s become a ticking time bomb for your nest egg!

So while your trusted feathered friend and some reliable media sources frown upon these products, the fixed annuity industry is getting a little testy. Well, when your only hot product is being lambasted in papers, magazines and blogs, salesmen tend to fight back.

The industry’s prize fighter is the National Association of Fixed Annuities (NAFA). Don’t be confused by the name, NAFA is a public relations firm for the fixed index annuity industry. NAFA was created to keep FIA’s away from being controlled and overseen by the Securities and Exchange Commission (SEC). They succeeded in that battle, and NAFA’s passion for FIA’s lives on.

Now NAFA is the  watchdog for any “wrongdoings” or negative commentary pertaining to the FIA industry. What’s funny to me is why an insurance/financial product needs their own public relations firm? Continue Reading

This past weekend was all about football for this bird! Ironically, while watching I started to draw a similarity between football and annuities. Just as the defense was chasing down the vulnerable quarterbacks our unsuspecting seniors are being chased daily by vicious agents selling subpar annuity products.

Many top selling fixed index annuities should be outlawed due to the extra-long contract charges. Take American Equity’s Bonus Gold fixed index annuity, for example. Did you know that this product, which takes in hundreds of millions of dollars annually, has sixteen years of surrender penalties! You know how long sixteen years is? Sixteen years ago you probably never heard of the internet, AOL, or Amazon. That feels like a thousand years ago doesn’t it? Continue Reading

Fixed indexed annuities (FIAs) are the “it” product in the fixed annuity world right now. Formerly known as an index annuity, the “fixed” prefix was added because the insurance product sounded too much like a registered investment. As a result, FIAs don’t show investment returns, and formulas are used to determine the FIA yields. These formulas are called crediting methods. But let me warn you, this crediting method stuff can get downright ridiculous when it comes to all the options and terms to understand. Continue Reading

I am so looking forward to 2012. Believe me when I say, I’m not the only one who thought 2011 was a roller coaster ride! Don’t you think we Americans have gone through enough already? Geez, my nest egg has been flattened for years. Let’s all hope for higher bank and annuity yields in 2012.

We all know rates have been at historical lows since last summer. Thanks to a paralyzed economy and a horrible real estate market, the Federal Reserve needs rates low to help spur money movement. But the true hero, the American saver, has been killed by microscopic bank CD rates. I am so ticked off that Americans who did the “right” thing by saving for their retirement are the ones getting hosed with no return on their money. This bird is mad as hell and I want some yield! Continue Reading

Happy holidays! I hope everyone spent quality time with friends and loved ones this Christmas. I had a glorious Christmas celebrating with all my friends! Cash Cow brought the drinks, Fancy Fox handled the fixin’s and Camilla Cat prepared her famous gold fish. I, of course, served my specialty — nest egg soup.

Now that the New Year is upon us, 2012 is shaping up to be a dramatic one. After all, there’s no such thing as dull and humdrum years anymore, right? Euroland’s financial problems aren’t going away and neither are our national debt woes.  I expect “this crisis” to linger throughout the year and don’t foresee U.S. debt difficulties coming home to roost until mid 2013. The presidential election will put a safety net on the economy and stock market. As a result, interest yields should stay low throughout the year. Continue Reading

Wow! Can you believe Christmas is here already? I don’t take flight much anymore, but these years sure fly by!

Since my nest was renovated last year and my new feathers have me nice and cozy, I really don’t want much for Christmas. Some popped birdseed would do just fine.

Christmas is the time for giving and I want to give all of you a priceless gift — tips on finding a trustworthy financial advisor. I’m not talking about those know-it-all advisors that crave the limelight. I’m speaking of the advisor who’s only priority is the needs of his clients. The advisor may not be perfect, but their heart and wallet sure are in the right place. Continue Reading