Tom Meyer can hardly believe what he’s saying. “I’ve been anti-annuities for 36 of the past 37 years, but there are new products that are worth considering,” he says.
Meyer is CEO of Meyer Capital Group, a fee-only investment management and financial planning firm in Marlton, N.J. Annuities, he explains, were not in his playbook because they were “hard to understand and had hidden fees. People were being sold a bill of goods.”
But now, he’s begun to change his mind. “There are some now that are basically fee-only, RIA-friendly, client-friendly, much easier to understand and far cheaper,” Meyer says.
In his past aversion to annuities, Meyer was far from alone. Last summer, a survey of more than 200 registered investment advisors found that an overwhelming majority are biased against annuities and lack an understanding of how they work.
But why? Many clients retiring today don’t have pensions and would like something that looks like one.