15 Reasons Why You Shouldn’t Buy an Annuity – (And 5 Real Life Scenarios When You Should)

Many advisors think they’re doing their clients big favors by telling them that they’ll never put them in an annuity. And with all the negative press that annuities get, it’s not too surprising.

However, I think annuities are fantastic – in the right situation.

There are at least 15 reasons why some people shouldn’t buy an annuity. If you’ve done much research on the subject, you’re probably already aware of a few of them.

But you need to know that annuities serve certain very specific purposes, and if you happen to have a need for one of those purposes, then an annuity can be a game-changer.

Here are 15 reasons why you might not want to explore the annuity side of things– and five reasons why you should.

Carefully consider all of these reasons, and see your financial professional before making a final decision on an annuity.


Here are some reasons why an annuity might not work great for your situation:
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GF¢ 039: Reader Question: What is The Best Thing to Do With an Old 403(b)?


Well, whether you need PROFESSIONAL professional help is up for debate, but when it comes to your finances, don’t rely on Google.

You need someone who knows what they’re doing.

Confident happy business woman with coworkers in the background


Consider this example:

I am 45 years old with 3 young children.   My biggest concern is that in about 10-12 years, they will be going to college.  I have a good job and currently make $75,000 per year.

I don’t have college savings plans set up for them at the moment.  I’m considering opening a Roth IRA and maxing it out every year so they use it for college.

I also have an old 403b just sitting there doing nothing. I’m maxing out my 401k at my current job, which also offers an 8% match.  Would you please advise what I should do for my children and for my retirement?  Also, do you think I should convert my old 403b into a Roth IRA?

Ah yes.

These are the type of questions that a Certified Financial Planner drools over.
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14 Reasons to Not Listen to Suze Orman

Oh Suze….

You either love her, hate her or really hate her.

In truth, a lot of her advice is really good stuff. But some of it is teetering on the edge, and some advice is just plain bad.

IMG - 14 Reasons Why You Should Not Listen to Suze Orman

Even though I questioned some of her advice I still respected what she’s been able to do in educating the masses.

That all quickly was thrown out after she launched her pre-paid debit card program that grew immediate criticism. Instead of focusing on the benefits the card offers (none that I know of), she took the much nobler route of calling people names that questioned the cards merits as shown below.

In the above exchange, “@ptmoney” is my buddy Phil Taylor is a CPA, personal finance blogger at PTMoney.com and founder of the Financial Blogger Conference. So yeah, she called my “battle buddy” an idiot and that ain’t cool.
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GF¢ 029: 7 Financial Advisors I Would Like to Punch in the Face


People who know me know I’m not a very violent guy.

I’ve never been in a fist fight in my entire life, I very seldom ever yell (except when the St. Louis Cardinals would blow a four run lead in the bottom of the ninth), and I cover my face with a pillow when there’s a confrontation on the TV (go ahead and laugh…my wife does).

In short, my personality type is one that is constantly smiling, and can be easily labeled as “Joe Cool”.

But, like any human being, there are some occurrences that get me really fired up.

One of the biggest things that gets me fired up? 

Financial advisors that lie, steal, and cheat.

7 Advisors I'd like to punch in the face
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8 Questions to Ask a Prospective Financial Adviser

IMG - 8 Questions to ask your financial advisor

The following is an excerpt from the book The Five Years Before You Retire by Emily Guy Birken.

There are many different types of financial planners and advisers—and only some of the titles that various financial advisers can use are regulated. Meeting someone who calls himself a financial planner could mean you’ve shaken hands with an insurance agent, a stockbroker, an investment adviser, or a Certified Financial Planner (CFP).

If that’s not confusing enough, different types of advisers are paid in different ways, which can seriously affect your bottom line. Even those with a good understanding of the financial can be excused for feeling a little overwhelmed.
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30 Financial Rules That Every 30 Year-Old Should Know (or risk going broke)

The BIG 3-0. 

The age that you’re really an adult.  In your 20’s, you could still swing being a bit immature.

Once 30 comes it’s game over.   And now that I’m 35….

Dang! Am I really 35?   <sigh>

Halfway through my 30’s and I’ve been rocking it the best way I can.

As a result, I’ve had some time to reflect on the things I’ve done right — and things I’ve done wrong  <<— trust me… there’s been plenty of wrong.

Living as a 30-something brings a lot of new and interesting financial challenges.

financial rules for 30s

You are probably making more money now than you ever have before, but you also have more challenges.

A couple of things we’ve dealt with is having more kids, building a home, changing careers, starting new businesses, and dealing with loss.

And this decade is one in which the thought of retirement and other financial issues becomes a little more “real.”

Whether you are about to turn 30, or whether you are heading into your mid-30s, now is a good time to review the following 30 financial rules for your 30s:
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The Newlywed’s Guide to Budgeting

Do you ever feel like you can only learn things the hard way?

That you were told what to expect in certain areas of life but couldn’t fully understand until experiencing it firsthand? I know I do. My most recent first hand lesson was just a few months ago – planning my wedding.

Newlyweds Guide to Budgeting

I’ve heard that weddings are hard but I never could have truly grasped the amount of turmoil they can cause in your life without going through it myself. Between the money, the time, and the inevitable disagreements on howitshouldlookwhereitshouldbehowmanypeopleshouldbeinvited, it can feel nearly impossible to get through.

And by the time my husband (still feels weird to say that word!) and I got to the other side, we were convinced that nothing we go through together could ever be that hard again. We were lean, mean, conflict-busting machines.

…and then it came time to sit down and work on our finances together. We had planned to do this prior to the wedding, but with both of us working at startups (read: long hours) and planning a wedding from across the country (SF to NY), we just didn’t have the bandwidth to talk about our finances. So we saved the couples finance talk until after the wedding. Not exactly the best strategy…
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The How To Guide for Becoming a Financial Planner

This is a guest post by Dave Grant of Finance For Teachers.  

Being a financial planner I get asked all the time how others can get started in our business.  I’ve shared on the blog before how I got started, how I became a CFP®, and what it takes to become a successful financial advisor.  Many of you have appreciated those posts – Thank you! 

On Twitter I caught wind of another advisor that recently started his own RIA firm (like me).  He even chronicled his journey in Financial Planning Magazine.  I loved his openness and honesty in those pieces that I decided to ask him to share his journey on the blog for others that are interested in becoming a financial planner. 

Dave Grant is a fellow Certified Financial Planner™ like myself, loves soccer and extremely proud that he taught his young son how to pee standing up (I can relate!).  He’s a cool dude and I’m excited he took the time to share his story below. 

Enter Dave…


become a financial planner

Firstly, thank you for reading past the title itself. This piece is not for everyone, but if you’re looking to become a financial planner, then you NEED to read this.
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Can You Rollover Your 401k to a Roth IRA?

Typically, most people will initiate a 401k rollover to a traditional IRA.

A common question that I’ve been getting lately is,

“If you can roll over your 401k into a Roth IRA then how you do it?”

401k rollover into Roth IRA

Whenever you leave your job, you have a decision to make with your 401k plan.

A variation to that is if you have been contributing to a Roth 401k…..then what are your choices?

Let’s see if I can help you make “cents” of the situation. Here’s how you roll over 401k into a Roth IRA.

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Dollars and Cents: Can You Become a Part-Time Financial Planner?

It’s time for another edition of Dollar and Cents. This is where I answer one of your questions.

If you have a question, either use the contact form on the blog or use my Facebook Fanpage.

Today’s question comes from Derek:

Hey Jeff, First thing I want to say great blog! I’m currently in the workforce and entertaining a new profession as a financial planner. I really enjoy keeping up with the markets and many of my friends and co-workers come to me for advice on their investments. I’ve been doing some research in getting in the business and it seems daunting as many of the big brokerage firms want you to work crazy hours the first couple of years. I’m not ready to give up my day job and was considering giving it a go part-time. What do you think about the likelihood of being a part-time a financial planner?

Derek is not the 1st person to ask me about becoming a part-time financial advisor. Many people that have a love for investing, numbers, and helping people have emailed asking me something similar.

To all of those that are interested in the financial planning profession on part-time basis, this video is for you. ;-)

Making sure that I hadn’t missed anything regarding being a part-time financial advisor, I asked some of my colleagues to share their thoughts on the matter.  Here’s some comments from a fellow financial advisor whether you can do it part-time: [Read more…]

4 Money Problems You Don’t Want to Experience the Hard Way

It hurts to learn a lesson the hard way – especially with financial lessons.

There’s nothing like that sick feeling in your stomach when you realize you’ve screwed up royally and will have to face the consequences.

And yet, we all have those stories about the times we messed up and the lessons we learned, don’t we?

money problems to avoid

The only silver lining is that we can teach other to avoid certain mistakes that we ourselves have made. Hopefully by sharing our experiences, we ensure that others don’t have to learn the hard way. Below, I’ll examine 4 of the most important lessons that we tend to learn the hard way:
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