Tresidder - Variable Annuity Pros & Cons

Variable Annuity Pros & Cons
Surprising Truths Your Adviser Wont Tell You

Todd Tresidder

Copyright 2012 Todd Tresidder

All rights are reserved.

With the exception of brief quotations in a review, no part of this report may be reproduced or transmitted, in any form, or by any means, including electronic, mechanical or photocopying, recording, faxing, emailing, posting online or by any information storage and retrieval system, without written permission from the publisher.

Published by FinancialMentor.com

ISBN (Kindle): 978-0-9822891-7-4

ISBN (Epub): 978-1-939273-00-0

ISBN (Print): 978-1-939273-01-7

Disclaimer

This publication represents the opinion of the author regarding the subject matter covered. It is for educational purposes only. The publisher and author neither imply nor intend any guarantee of accuracy. It is offered with the understanding that neither the publisher nor the author is engaged in rendering legal, tax, accounting, investment planning, or other professional services, nor is this information intended to be a substitute for such services. Should specific advice be necessary or appropriate, the reader should seek that information from a competent professional. The author and publisher particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. The author and publisher believe the education presented herein is sound, but readers cannot hold either party responsible for either the actions they take or the results of those actions. While every effort has been made to make this book as complete and accurate as possible, there may be mistakes, both typographical and in content. The education contained in this book may not be suitable for everyone; use at your own risk.

Foreword

Financial information is just like Goldilocks and the Three Bears. Too much. Too complicated. Too confusing. Its seldom just right.

Too Short: The Internet is filled with sound-bite-length half-truths forcing you to waste hours searching repetitive and contradictory articles to uncover the whole truth.

Too Long: The bookstores are filled with multi-hundred-page tomes padded with fluff chapters like A Brief History of the Financial Markets and What Is a Stock? when all you need is 10 pages of concrete ideas you can put to use.

Too Simple: The financial content mills produce reams of articles for magazines and web sites written by professional writers who arent financial experts and lack practical experience.

Too Complicated: Academic journals have great research, but its written in an inaccessible style using financial geek-speak so that only a trained expert can decipher the encrypted meaning.

Frankly, Im tired of financial fairy tales so that is why I wrote the 60 Minute Financial Solutions series of ebooksso that you could have the just right next step.

Each ebook provides a concise, definitive answer to an essential financial question that youll inevitably confront on your path to financial security. Each ebook is a one-stop solution to a single financial issue so you learn exactly what you need to know, when you need to know it.

What you get with each ebook is the distillation of everything that is valid and the elimination of everything that is not. The goal is to simplify without oversimplifying so you can make an independent, intelligent, and appropriate financial decisionin about 60 minutes.

Best of all, these books are written by a genuine financial expert. I was trained as an economist and Ive published in the academic world. I also refined my practical knowledge as a hedge fund investment manager for more than a decade with 100% winning years (except one small loss of less than 3%). I now work as an educator coaching people just like you to achieve their financial goals.

In short, Ive spent a lifetime mastering personal finance and investing so you dont have to, and Ive condensed all that experience into this solution-oriented series of ebooks. The stuff that works is in these books, and its provided in straightforward language to make it as accessible as possible.

The goal is to empower you with the knowledge necessary to take charge of your finances and achieve your goals. Ive taught many others and I can teach you as well. Financial security really is possible if you just know what you are doing and take the right actions. It doesnt have to be complicated.

All you need is the right informationnot too much, not too little, not too simple, not too complicatedjust the right stuff.

If this book delivers on its promise, please let me know with a favorable review so I can thank you. If it doesnt, please write me at so I can send you a refund and correct any potential problem.

Thanks for your support!

A Brief Note About Reader Level And Defining Terms

No financial education book can perfectly address every readers needs. After all, each of us brings a different experience base and level of financial sophistication to the written page.

In other words, what is complicated to one person is oversimplified to the next making writing for a wide audience difficult.

In an effort to maintain brevity and respect all readers needs Ive assumed base level financial sophistication and chosen to not define every financial term contextually.

Instead, less familiar terms are defined in the endnotes at the back and linked within the text. That way advanced readers arent confronted with unnecessary definitions that distract the flow of writing while readers newer to the subject can easily resolve any confusion by following the links to find terms requiring greater explanation.

Introduction

The truly educated man is that rare individual who can separate reality from illusion.
Unknown

Uncover the truth hiding behind the variable annuity salesmans hype so you can decide if its an appropriate investment for you.

Variable annuities are complex and controversial investments.

Salespeople like to present variable annuities as having the growth potential of a mutual fund with the security of insurance, thus allowing you to invest in the stock market with a safety net. They might even use scare tactics to sell you by claiming variable annuities can protect you from seizure of assets in a lawsuit because its insurance.

On the other side of the table are consumer advocates who argue that variable annuity fees are so steep it can take more than a decade to outperform more straightforward investments, the benefits are misrepresented, and the restrictive features and penalties arent adequately understood. They offer studies that prove variable annuity purchases are rarely based on educated decisions but instead on salesmens hype.

What follows is a primer on variable annuities so that you know how to ask the right questions and arm yourself with enough information to make an informed decision.

Your objective is to determine how variable annuities compare with competing investment alternatives and if they are the right product to achieve your financial goals. Examine the costs and benefits of the variable annuity being sold to you (variable annuities are rarely boughtthey are sold) before risking your hard earned money.