401k Rollover to annuity?

I am working with a financial planner who wants me to roll my 401k into an annuity that he says will get me a 7percent return on my money. He said the fees are about 2 percent but would be worth it. Are annuitys a good way to invest or should I stay away.

Terry Says:  Well, it will certainly help the planner’s retirement!  But I’m not so sure about yours.  If you consult Fidelity or Vanguard or T. Rowe Price, you can roll your 40l(k) directly into an IRA rollover — and maintain your tax deferral.  They will help you work out a combined investment/withdrawal program that will give you the highest probability that your money will last your lifetime.  The advice is free, if they handle the rollover.  And the annual fees on their funds should be below one-half of one percent.  You’ll find that savings on fees, and on potential surrender charges, likely far outweighs the product the planner is offering you.  From what you write, it sounds like you’re meeting with an insurance product sales agent, not a Certified Financial Planner!