annuities in retirement

Terry Says

Sounds like your financial advisor is looking for a commission — not necessarily best for you. So I’d start by getting a different financial advisor! Watch this video!

I don’t know exactly what kind of annuity you’re talking about. Those terms are fuzzy. But if you were to be sold an “immediate annuity” — with payments stretching out over your lifetime, or combined with your spouse’s lifetime, you lose access to the balance of the money. The insurance company keeps the balance when you die. And you can’t get at it in an emergency. Plus, that fixed monthly check would have its buying power decimated by inflation.

Now if you’re talking about an “indexed annuity” (with stock market investments/gains involved) please search my columns using the word “annuity” to understand the pitfalls.