Brian Fricke, author and retirement planning expert, is cautioning clients to read the “fine print” when considering investing in annuities. 

Orlando, Fla. – June 16, 2010 – Brian Fricke, Certified Financial Planner® and author of “Worry-Free Retirement,” holds a weekly teleconference call, “Coffee Talk,” is a live call that is held every Tuesday morning from 9-9:30am, to discuss current financial, economic and lifestyle issues that affect retirees and anyone wanting to retire within the next 5 years. 

On June 8^th, Brian held a “Coffee Talk” call titled “Warning: Dirty Little Secrets Annuity Companies Hope You Never Find Out About.”  This call caused some slight “fireworks” when a caller challenged Brian about his views on Equity Index Annuities.  The caller turned out to be a seller of these annuities, and proved to provide the listeners with a great back-and-forth debate on the issue. 

At the beginning of the call, Brian remarked, “As usual, the big print gives it to you, and the small print takes it away.  So, before you run out and buy an annuity, be aware of some of the ‘smoke and mirror’ games that annuity companies use to get at your money.  Also, unfortunately, many of the people selling annuities really aren’t familiar with exactly how these things work.” 

Later in the question and answer segment, the caller who sells annuities suggested Brian was causing undue fear with his assessment of equity index annuities.  The caller remarked, “None of our clients have been pressured or manipulated.  We’ve got clients who have had a substantial double-digit growth opportunity (and growth capture) on their dollars and I think you’ve potentially positioned people to be fearful of what, in some cases, can be their best option.” 

Fricke responded by saying “My biggest concern with Equity Index Annuities is that I think they’ve been over-sold and misrepresented by a large number of folks as providing benefits that they’re clearly not designed to provide.  The equity index annuity is really nothing more than a formula to determine the interest that the annuity company is going to credit to the annuity contract, so in my simple way of thinking – why do we have to use some complicated formula to determine what the interest rate will be?  – Just tell me what the interest rate is and be done with it.” 

This exchange brought about many comments from the other callers.  One listener, emailed Brian about the exchange. “Brian – Excellent talk this morning.  Where I got snookered was (advisor name withheld) never explained that though the income basis amount can be set at the market highs, the cash value for withdrawals was based upon the actual stock market value, and of course since I thought I was protected and did not get out of the funds that it was invested in, in 2008, causing a 35% loss in the cash value.”  

Another listener (who happens to be a Certified Financial Planner) emailed the following comments, “I tune in every once in a while to your coffee talks. I like them. However last week I heard this guy attack your annuity wisdom. His name is (name withheld) and you are right – he is an annuity salesman and a friend of mine…He had a pretty decent size mortgage company and then the collapse came. He is now selling fixed annuities. They are only licensed to sell fixed annuities. They have had a radio show for years. First preaching mortgages now preaching annuities. Both partners know absolutely nothing about money and financial planning. They are just two guys trying to earn a buck. The sad part is they don’t know enough to know that they are screwing investors.”  

Brian encourages robust debate on the financial, economic and retirement issues of the day, and knows that his clients and others benefit greatly by participating in these free weekly teleconference calls.  

The “Coffee Talk” teleconferences are not limited to clients and will be available to the public, free of charge.  Details for each week’s call can be found at http://www.BrianFricke.com/news_room and you can listen to previous calls at http://www.BrianFricke.com/conference-calls 

Orlando Business Journal has named Brian’s company, Financial Management Concepts, one of the top financial planning companies in Central Florida. Financial Advisor magazine – an industry trade journal- has recognized him as one of the leading financial planning firms in America.  Brian Fricke is a Certified Financial Planner.  Financial Management Concepts is a Fee Only Financial Planning firm. They currently manage over $98 million of investment assets for a select community of clients. 

For more information about Brian Fricke and Financial Management Concepts, please visit http://www.BrianFricke.com.  You can also call toll free 1-800-294-4917 or send an email request to [email protected]

 

About Brian L. Fricke, CFP®:

Brian Fricke is the Author of “Worry Free Retirement, Do What You Want, When you Want, Where You Want”. 

For the last 6 years in a row Brian and his company – Financial Management Concepts – have been named one of America’s Top Wealth Managers. 

Orlando Business Journal has named his firm one of the top financial planning companies in Central Florida. Financial Advisor magazine – an industry trade journal- has recognized him as one of the leading financial planning firms in America. 

If you’ve been in Central Florida over 10 years, you may have heard him on the radio. He used to host his own show on WDBO radio. He’s also served on the City of Winter Springs Board of Trustees Pension Fund.  

Brian is a Certified Financial Planner. His firm – Financial Management Concepts – is a Fee Only Financial Planning firm. They currently manage over $98 million of investment assets for a select community of clients. 

Brian and his team have worked with retirees and pre-retirees from companies like AT&T, Sprint, Harris, Lockheed Martin and Siemens/Westinghouse.

For more information, please visit http://www.BrianFricke.com