Chris Price: Financial Advisor Views on Annuities Appear Tightly Related to Business Models

by the ANN Team on August 18, 2010

A recent study from Cerulli Associates indicates that registered investment advisors (RIA) are more than hesitant to recommend annuities to their clients.

The report surveys and compares the views of various forms of financial advisors.  Not surprisingly, financial advisors’ product views are tightly related to the financial incentives that support their business models.  Consider, for example, the following:

  1. Only 7% of insurance company representatives would be reluctant to recommend immediate or deferred annuities to clients.
  2. 15% of independent broker dealer representatives express reluctance to recommend annuities.
  3. 27% of wirehouse representatives express reluctance.
  4. A full 80% of registered investment advisors eschew annuities for client rollover assets.

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{ 13 comments… read them below or add one }

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Gallbouby January 11, 2012 at 3:48 pm

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by

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Keesha January 30, 2012 at 7:06 pm

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Thanks for spending time on the cmopuetr (writing) so others don’t have to.

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