Have you read the “Annuity Puzzle” article from the New York Times on Saturday, June 4th?
If not, post a comment below and I’ll get a copy out! You need to read this if you visit with clients about annuities!!!
It’s high-quality credibility from Richard H. Thaler, Professor of Economics and Behavioral Science at the University of Chicago Booth School of Business. But just as important, this 2-pager speaks to the core of what clients believe. It opens conversation about their beliefs and how they’re not alone. Here’s a couple excerpts:
- Economists call this the “annuity puzzle.” Using standard assumptions, economists have shown that buyers of annuities are assured more annual income for the rest of their lives compared with people who self-manage their portfolios.
- So, why don’t more people buy annuities with their 401(k) dollars?…Here’s one part of the answer: Some people think that buying an annuity is in some way a bad deal for their heirs. But that need not be true.
- It’s is the decision to self-manage your retirement wealth that is the risky one.
- An annuity can also help people with another important decision: when to retire
Read through these two pages and decide how you can leverage this in your practice. And make it a great week; contact me when I can do more.