Should I buy an annuity?
Are annuities a good idea for retired people?
Terry Says
That's a loaded question! A lot of people out there are trying to sell you annuities -- and most of them will be helping their own retirement more than yours! That is to say that they will be charging huge hidden commissions and fees to people who already have tax-deferral as they roll over their IRA accounts. Let me just say there are two kinds of annuities: immediate and deferred. Each is a contract with an insurance company. When you put money into an immediate annuity contract, you get a fixed check a month for life (or your life and your spouse's life, which produces a smaller monthly check). You never have to worry about running out of money. But if you die sooner than expected, the insurance company keeps the balance of your money. A deferred annuity offers a later date payout, with investment growth until you start taking the payout. Many annuities make complicated promises linked to the stock market. You are almost guaranteed to come out a LOSER on those deals. Please write back with more specifics of what you are being offered. Or do your own research at this fabulous website, which is put up by the most honest guy in the business: www.stantheannuityman.com.
