Why Ken Fisher Really Loves Annuities (And Why You Should Too!)

You have undoubtedly seen one of his commercials. It’s the one with the well-known slogan, “We perform better when you perform better.” Yes, I am referring to the man at Fisher Investments who genuinely said, “I would die and go to hell before I sold an annuity.” So why am I claiming that he genuinely enjoys annuities? Well, I think it all comes down to manipulation. Take a closer look….

If you believe that there is a regulatory agency, such as the SEC, safeguarding you against predators who commit such acts, you are mistaken! The SEC repeatedly inspected Bernie Madoff, but they took no action. It is revealed in Fisher’s fine print that the surrender charge is refunded gradually in the form of lower advisory fees. How come you overlooked that on contract page 341? (Joke)

At a 2019 financial conference in San Francisco, this man was caught on camera likening acquiring new clients to picking up a girl in a bar. His analogy concerned the subject of not discussing money or financial planning with clients directly. You need to schmooze them a little bit. Again worth six billion dollars, Fisher asserts, “You wouldn’t go up to a woman in a bar and ask, what’s in your pants.” ” Probably not the smartest analogy at the height of the #METOO movement. Fisher lost over $4 billion in managed assets as a result of that one remark. Don’t feel too bad, though, because he still has over $160 billion in other people’s funds to gamble with and get paid for.

Maybe he loves annuities because he is aware of how financially stable annuity companies are, but why else would a man publicly declare, “I would die and go to hell before I would sell an annuity,” “I hate annuities and you should too,” and call them “scumbag products” actually love annuities? His company owned over $85,000,000 worth of American Equity stock in 2014. Along with 2. 88 million shares of Jackson National Life Insurance’s parent company, Prudential Co. He has since liquidated those positions. Total hypocrite!.

“My company and I have not been able to accurately predict the short-term direction of the market in recent months, as we did in late last year.” ” Wait. That’s what you do, right? That’s why your clients pay exorbitant management fees, that’s why. Warren Buffett and others won’t be able to predict when the next crash will occur.

What You Need to Know

• The RIA is well-known for its famous argument that other investment products are superior for any task that can be completed with annuities.
• Academically speaking, retirees would not benefit from a complete refusal to suggest an annuity.
• Although the switch to fee-based compensation has generally benefited consumers, there are some conflicts of its own.

Ken Fisher has launched one of the most effective campaigns in history against a single financial product. Advertisements from Fisher have been seen by consumers looking for annuities, fervently arguing against their purchase for retirees. He’s even registered the trademark “I hate annuities. ”.

It’s no secret that Fisher believes the annuity market is a prime opportunity to promote his own asset management offerings.

Annuities are the source of many consumer complaints, and the insurance industry has generally done a remarkable job of creating an opening for someone like Fisher to capitalize on negative product perceptions and position himself as the honest alternative for investors seeking retirement advice.

On his site, Fisher notes “Fisher Investments does not sell annuities. We never have, and never will. Why? Our founder, Ken Fisher, is fond of saying, “I hate annuities,” because he believes anything you can do with an annuity can be done better with other investment vehicles.”

Annuities, like mutual funds or exchange-traded funds, are product structures. Mutual funds and ETFs are unable to accomplish two tasks that annuities can. Through a mechanism called mortality credits, they enable retirees to spend more each year and worry less about running out of savings while offering tax-deferred growth in a nonqualified account.

An advisor who assertively markets himself as a fiduciary and says they will “never” suggest an annuity to a client is nonsensical to an economist. The majority of retirees would undoubtedly not benefit from the recommendation not to recommend an annuity.

Why Ken Fisher really LOVES Annuities! (And YOU should too!)

FAQ

Why do financial advisors not like annuities?

What is unique about Fisher Investments?

Why do annuities have a bad reputation?

What does Ken Fisher like about annuities?

As Jane Wollman Rusoff reported in a 2015 ThinkAdvisor interview with Ken Fisher himself: “What Fisher likes about annuities is his annuity conversion program, which buys folks out of their annuity surrender fees if they become long-term clients. The penalties incurred to liquidate are amortized against quarterly advisory fees.”

Does Fisher Investments sell annuities?

Fisher Investments does not sell annuities. We never have, and never will. Why? Our founder, Ken Fisher, is fond of saying, ” I hate annuities ,” because he believes anything you can do with an annuity can be done better with other investment vehicles. We have worked with countless clients who purchased annuities that did not meet their needs.

Are all annuities the same?

1. Not All Annuities Are the Same. Watch the Fisher ads, read the reports, and pay attention to interviews with Fisher. The ad campaigns, at times, paint all annuities as being the same and in a negative light. However, annuities have as much variety and flavor as other assets, from stocks to mutual funds, do.

Should variable annuities be legal?

Fisher particularly hates variable annuities, which “should not be legal as they currently exist,” he says. What Fisher likes about annuities is his annuity conversion program, which buys folks out of their annuity surrender fees if they become long-term clients. The penalties incurred to liquidate are amortized against quarterly advisory fees.