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How to Choose an Annuity Broker

How to Choose an Annuity Broker

An annuity broker is a person who represents several different financial companies and can work with you in order to select the correct annuity for your investment needs.  Annuities are an excellent way to set aside money in a tax-deferred account and invest for future needs.  Since many annuities are sold by insurance companies, a lot of annuity brokers are also insurance brokers.  They may represent a couple of companies, or many companies, letting you choose the right annuity.

A good annuity broker is one who has been in the industry for a long time and has the experience to help you select the right annuity.  Some insurance brokers dabble in annuities and other financial products, but don’t really know a lot about them.  You need an annuity broker for whom annuities are a  large part, if not the main part, of their business.  this will guarantee that they will be able to give you sound advice and truly know what they are talking about.

You should also look for an annuity broker who represents companies you know and trust.  Look for at least a few big names in the industry among their offerings.  Remember that some of the large companies do not sell annuities through brokers, but only through their own agents.  Still, you should be able to see big insurance and financial companies represented.  This tells you that the broker is offering you some of the best possible investment options available and is a serious financial advisor.

It is vital that you can trust your annuity broker.  This is a person who will help you to make major decisions regarding your finances.  Ask friends and family for referrals, and check on the licensing status of any annuity broker you are considering.  You can also find out if any complaints have been filed against that person.  Sit down and meet with the broker to see how you feel about them.  In many cases, gut feeling is a good thing to trust.  If you feel the person in question can be trusted, they probably can.  But your instincts can’t replace proper research and referrals from others, so make sure that is not all you base your decision on.

A good annuity broker is one who is willing to work with you no matter what your income or investment level.  If you are new to annuities, they should be willing to walk you through the process, answer all your questions, and provide you with any information you need.  Anyone who wants to rush you out of the office as soon as you sign on the dotted line is not someone you want to work with.

With many choices out there, finding the right annuity broker can be difficult.  But once you have someone you can trust, you will be able to feel confident that your hard earned money is being well taken care of.  If annuities are part of your financial plan, the right annuity broker can make that plan come to fruition.

Photo courtesy of Randy Le'Moine Photography.

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