If you’re exploring annuities as a potential solution for your retirement, you may have encountered some resistance from your current financial advisor — or even your CPA — who tells you to steer clear of annuities.

This advice can be frustrating and confusing, especially if you’re seeking a more secure, predictable source of income for your retirement years. But why does this happen, and should you take it seriously?
 

In this article, we’ll break down why financial professionals — particularly CPAs and traditional financial advisors — might not always have the expertise to advise you on annuities, and why their concerns might be based on outdated information or self-interest.

We’ll also explore how to navigate these objections and make sure you’re getting the best advice for your unique financial situation.

 

The Difference Between a CPA and a Financial Advisor
 

Before diving into why your advisor might be advising you against annuities, it’s important to understand the different roles of a Certified Public Accountant (CPA) and a financial advisor.
 

• CPAs specialize in tax preparation and accounting. Their focus is on ensuring that your taxes are filed correctly, that you understand your financial statements, and that you meet all legal obligations. While they may have some general knowledge of investments, their expertise is not typically in long-term retirement planning or financial products like annuities.
   

• Financial advisors, on the other hand, are professionals trained to help clients with broader financial planning, including retirement strategies, investments, estate planning, and insurance products. They are usually more familiar with the tools and strategies that can help you generate income in retirement, including annuities.
  
   

Why CPAs May Advise Against Annuities
 

When a CPA tells you to stay away from annuities, they likely mean well.

CPA's are known as the "original fiduciaries."  Most are fiercely protective of their clients and their clients' best interests, and they will fight hard to guard their clients from being "thrown to the wolves" by the stereotypical "sleazy" stock broker or annuity agent.  This is a good thing.  However, sometimes it can also result in a very well-meaning but unfortunately mis-guided second opinion that may not actually be best for the client.

They may be concerned about potential fees, lock-in periods, or other risks associated with older, high-fee products. The problem is that CPAs often have limited exposure to the modern annuity products available today, and their knowledge is often shaped by outdated, negative stereotypes surrounding annuities.
 

For example, many CPAs are familiar with the “horror stories” of high-fee, poorly structured variable annuities that were sold decades ago. These products were often complex and costly, and the marketing for them was sometimes misleading. Because of this, CPAs may have an inherent bias against annuities, simply because they are unaware of how much the product has evolved.
 

Modern annuities, such as fixed-indexed annuities or multi-year guaranteed annuities (MYGAs), have lower fees, more flexibility, and significantly more attractive features than the products from the past. Additionally, annuities today are designed with consumer protection in mind, offering guaranteed income, preservation of principal, and protection against market downturns.
 

Because CPAs aren’t usually immersed in the world of modern annuities, their objections are often rooted in the past. While they certainly want to protect their clients, their advice may be missing out on the benefits these products offer for certain retirement strategies.

 

Why Incumbent Financial Advisors Often Advise Against Annuities
 

The scenario with a current/incumbent financial advisor is somewhat different.

Your current financial advisor’s reluctance to recommend annuities usually stems from business interests and self-preservation. Sorry, fiduciary or not.  It is very rare in today's world to find an advisor who is going to happily agree with you that your interests would be better served elsewhere than under their management. 

Here’s an analogy that may help you understand the dynamic:
 

Imagine a friend who just visited a renowned cardiac surgeon for a critical procedure recommendation. Upon leaving the surgeon's office, your friend asks their family dentist — who has no expertise in cardiology but is trusted for dental care — for a second opinion. The dentist advises against the surgery, despite not being qualified to comment on it.
 

As a friend, what would you say? The clear answer is that your friend should listen to the cardiac surgeon, since they are the expert in the field of heart health.
 

May consumers are quite unaware that like the medial profession, financial advisors commonly spend their careers focused on different areas of expertise.  Specially Accumulation Phase Vs Preservation Phase advisors. 

In the same way, financial advisors might be well-versed in traditional investment strategies (like stocks, bonds, and mutual funds) but may lack the deep understanding of annuities and their role in retirement planning. So, when they advise you against annuities, it’s often because they don’t specialize in them or don’t understand the full range of modern annuity products.

A great litmus test is simply to notice how long you've been working with the same advisor.  Meaning, if they are the advisor who has helped you through your working career to accumulate a nice nest egg for retirement, you're likely working with an Accumulation Advisor.  And as good as a job as they may have done getting you TO retirement, there is a whole different set of skills, techniques and expertise needed to get you THROUGH retirement. 
 

Moreover, no two financial advisors can occupy the same space at the same time. When you’re presented with a new strategy — such as an annuity — and then seek a second opinion from your current advisor, it’s like asking your ex-girlfriend/boyfriend what they think of your new partner. It’s highly unlikely you’ll receive an unbiased opinion because your advisor has a vested interest in keeping your assets under their management.

 

The Ironic Transition: From Resistance to Acceptance
 

In our experience, we coach many clients who are considering annuities as part of their retirement strategy. They often come to us because they have specific concerns that their current advisor or CPA hasn’t been able to address effectively. These concerns could include issues like market risk, income stability, preservation of principal, or inflation protection.
 

When clients bring these concerns to their existing advisor, the advisor might react defensively. In fact, it’s not uncommon for a current advisor to “throw a fit”, using every negative annuity objection in the book to scare the client into abandoning the idea. This can include talking about high fees, long surrender charges, or illiquidity — all of which may be rooted in outdated, exaggerated information.
 

However, something interesting happens when the client remains confident in their decision and is not swayed by the objections. Suddenly, the advisor might offer to set up the annuity for the client themselves, saying something like, “Well, if you really want this annuity, I can help you set it up here, since we’ve been working together for so many years.”
 

This is the moment of truth: If the advisor could have solved the client’s concerns earlier, why didn’t they? Why didn’t the advisor proactively recommend a solution that would address the client’s risk reduction, stable retirement income, and principal protection needs?  And ever more important, why did this "evil" annuity that was such an awful idea just amount ago, suddenly become acceptable and a good idea for you, the client, so long as the current advisor gets to be the one to implement it for you (and therefore retain those revenues in house).  See what we mean?
 

The reality is that the advisor’s sudden willingness to recommend the same annuity is likely motivated by self-interest. When faced with the prospect of losing a client, an advisor may suddenly "come around" to the idea of an annuity. But why didn’t they suggest it sooner if it was such a great solution?
 

This situation illustrates a key point: If you’re already exploring options outside your current advisor’s recommendations due to ongoing retirement concerns, that’s a sign that you may need a new perspective or expertise.

 

Is Your Current Advisor Meeting Your Retirement Income Needs?
 

If you’re facing significant retirement concerns — like wanting a guaranteed income, market protection, or preservation of principal — and your current advisor hasn’t addressed these needs effectively, it may be time for a second opinion from someone who specializes in these areas.
 

Just as you wouldn’t go to a dentist for a cardiac issue, you shouldn’t expect a traditional financial advisor who primarily deals with stocks and bonds to fully understand the nuances and benefits of annuities.
 

Ultimately, your advisor’s primary role should be to put your best interests first and help you make informed decisions about your financial future. If they are not doing that, it might be time to seek out a specialist who can provide the comprehensive retirement planning expertise you need.

 

Conclusion
 

If your current advisor or CPA advises against annuities, it’s important to consider why they are making that recommendation. Often, their objections are rooted in limited knowledge of modern annuity products or self-interest in retaining your assets for their own benefit.

While they may very well have your best interests at heart, their expertise may not be the right fit for addressing your unique retirement concerns.
 

By exploring other financial experts who specialize in annuities and retirement planning, you may discover strategies and solutions that are better suited to your goals — particularly if you need guaranteed income, principal protection, and more certainty in an uncertain market.
 

If your retirement plans are complex or you’re seeking a fresh perspective on your long-term financial security, it may be time for a second opinion from a professional who understands the full spectrum of modern financial products, including annuities - and how to correctly re-design your portfolio for the Income & Preservation Phase of Life.  

After all, your retirement future deserves expert guidance, not outdated advice or self-serving objections.