My Dream Annuity

Nathan DutzmannAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

The following is an open letter to the annuity industry.

You are looking for ways to expand your reach into the fee-only advisor space, and I am sympathetic. Progress has been slow, fraught as it is with product complexity and the industry’s reputation for lack of transparency and high fees. Yet annuities offer certain benefits that advisors and their clients cannot create with traditional investments.

As a member of a growing faction of goals-based investment planners, I humbly request that you bring to market a product that looks like this.

My dream annuity: Characteristics in brief

My dream annuity has the following characteristics:

  • It pays a guaranteed, CPI-adjusted income stream…

…for the lifetime of the annuitant(s)…

…beginning now (SPIA) or at whatever future date we choose (DIA).

  • It can be purchased without death benefit, surrender/remainder value, or other add-on that would reduce income…

…but it has a cash value or other method of eliminating conflicts of interest for fee-only advisors.