The article “Escape the Fee Prison Now”  addresses the financial crime of high fee annuities with long surrender charges.  It reminds me that the vast majority of physicians (and non physicians) use commissioned salespeople for their investment “management.”

And the favorite weapon of these stockbrokers and insurance salespeople are these very annuities.  They pay commissions approaching double digits and throw their investors into fee prisons that they can rarely escape from.  The only comparable crime is that of whole life insurance sales in many cases, in which commissions can approach more than 100% of the entire first year premium (if you don’t believe me, just look at the cash value after one year of the next policy you are pitched).

Fortunately, there is an increasing amount of information in the press about the ability to escape the clutches of salespeople in your financial life.  The presence of fee only advisors is being widely publicized and understood, and multiple avenues of low cost investing are available for those seeking just investment help (and no financial planning).

If you are still using a stockbroker or insurance salesperson for “investing”, you owe it to yourself and your heirs to understand what you are paying for and how much it costs.  I think you’ll be surprised in an unpleasant way.

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