Maybe I’m old fashioned, but I want to know the name of the person who owns the entity that's handling my life savings. The lack of transparency on some annuity websites is concerning. It's shocking that some sites don't even provide the names of their owners or agents. Without any history or track record, it's difficult to trust them.

Backtesting is incredibly useful, but only when done right. One of the biggest issues with hypothetical backtesting is that it needs to be done at the company's current rates, but different companies have different policies on how they handle their crediting rates after the first contract year. This is important information that can only be obtained through owning those contracts or advising clients who did.

It is a red flag if someone expects you to purchase an annuity based solely on hypothetical backtesting results without discussing the company with one of our fiduciaries. Through our years of experience and client statements, we know which companies honor their rates after the point of sale.

We need to be loud and clear with our disclaimer about hypothetical backtesting because it's unethical for other sites to sell annuities based on it . I unfortunately can think of one example of a company that makes sales based on hypothetical backtesting, but the company has a history of dropping caps to near the guaranteed minimum after the first contract year. We're not saying they're scamming, but without knowing the renewal rates a year after purchasing a contract, it's impossible to make an informed decision.

We need to make it clear that relying solely on permutation tests to select companies would lead to a terrible experience. It's important to consider companies that intend to reduce rates later, which may result in a more favorable first-year payout. Historical backtests based on only the first year can create an appealing scenario that is actually deceptive.

However, to make a responsible annuity purchase, it's crucial to study the actual results of the same contract over the past 30 years, not just hypothetical backtests. Websites that don't disclose the names of their associated people or agencies and rely solely on hypothetical backtesting can lead clients in the wrong direction and expose them to adverse selection.

Our 40-year unblemished track record sets us apart from others in the industry who are afraid to associate their names with annuities. We need to emphasize this and play our cards hard, focusing on the importance of actual results rather than just hypothetical backtests. By doing so, we can provide our clients with the best possible outcomes.