Fixed index annuities
We are in our mid 50’s and have over 1 million in investments. We have someone suggesting getting a fixed index annuity. After doing some reading I’m not sure if it’s a bit of a scam or just buying an insurance policy, so to speak. Yet this is no guarantee, like the market, as it is only as good as the fiscal strength of the company behind it. I don’t want to feel pressured to move so much to this alone…even if the market is Currently shakey. What’s your view on this product?
Terry Says
Don’t do it! You’ll make the salesman rich — not you! Here is a link to a column on Fixed Index Annuities that I wrote last Spring. It explains all the things that are wrong with this product! It’s not just about the safety of the insurance company behind these products, but the way the indexes are calculated. They limit your returns — and liquidity — and they are too good to be true as they are presented in most sales pitches!
