We're here to be of assistance however we can. We look forward to hearing from you!.
Cherry Hill, NJ (PRWEB) May 21, 2015
For retirement income planning, people have many options for annuity products. But according to Brent Meyer, licensed annuity expert and dedicated consumer advocate, annuities can greatly differ in terms of the benefits they offer. Choosing the right option involves being fully educated about the dynamics of the annuity industry.
As President and co-founder of Safe Money Resource, Meyer seeks to connect the retiree community with critical, updated information for sound financial decision-making. In that mission, he says it is important to understand the place of Field Marketing Organizations (FMOs) within the annuity industry.
“FMOs function as an intermediary between insurance carriers and financial advisors. They recruit advisors to sell the insurance carriers' products, such as life insurance, annuities, or long-term care insurance,” Meyer explained. “Once they've attracted recruits, they support them in marketing these products to clientele. There are hundreds of FMOs which are constantly seeking advisors to house their carrier contracts.”
According to Meyer, some downsides exist within this middleman distributor model. The FMOs receive sizable overrides from their recruited agents' annuity sales over time. In exchange for exceeding sales goals, the advisors receive additional compensation in the form of incentives and perks. With these dynamics, there could be conflicts of interest in the advisors' financial recommendations at point of sale.
“It's a system with strong implications for financial consumers. After all, some advisors may be more interested in self-enrichment than their clients' needs,” Meyer elaborated. “ If they work with someone who's not putting their interests first, these clients will suffer in their retirement.”
At times, the annuity industry delivers misleading sales messages to consumers. This advertising includes content such as annuities offering outrageous growth potential. In the end, financial education is an effective solution for beating back the smokescreen. “We recommend conducting due diligence on annuity products you're considering. Then you must ask your advisor the right questions to determine if an annuity is a fit for you,” declared Meyer.
At SafeMoney.com, investors have access to a complete, one-stop center for financial education. There are articles and guidebooks on annuities, life insurance, Social Security benefits, long-term care insurance, IRAs, retirement income planning basics, effective estate planning principles, and more. For more information, please visit http://safemoney.com/.
Safe Money Resource is an Independent Marketing Organization (IMO), or a small network of licensed annuity specialists. It works with financial professionals who are independent agents, or retirement planners not tied to just one insurance carrier. They are able to offer a wide, diverse product selection from many providers. On the whole, Safe Money Resource has relationships with over 40 major insurance companies. Before making any recommendations to network members, it vigorously researches, evaluates, and analyzes each financial product.
Safe Money Resource also stands out with “Safe Money Approved” advisors, or professionals noted for their professional integrity, knowledge, and financial expertise. These individuals undergo careful vetting and confirmation to be quality professionals before they earn Safe Money Resource's distinction as “Safe Money Approved” advisors. To locate a qualified professional in your area, please visit http://safemoney.com/local-advice/find-an-advisor.
“If you have any questions, give us a call at 877.GROW.SAFE. Our team is committed to helping you achieve the retirement income security you're looking for,” said Meyer. “We're here to be of assistance however we can. We look forward to hearing from you!"