Ask Terry Questions annuity fund

annuity fund

By Terry Savage on May 10, 2018 | Investments

Currently I have an annuity of $41,000 - the brunt of which is invested with the S&P500 earning just 2% - So, if the S&P goes up I make money, if it goes down I do not lose anything but neither do I earn money. One year I did not earn anything, the next year about $5000 My question is what is the best place or way to better invest my $41,000 Thank you

Terry Says

Well, you may not have a lot of choices about this.  When you purchased this annuity, you were likely locked in for a period as long as 12 years.  If you try to get out during this period, you will pay expensive surrender charges. So first, ask the insurance company if you are past the surrender charge period. The problem with these "indexed annuities" as I wrote in a recent column, you do not get the full growth of the S&P 500.  You don't get the dividends, which amount to about 40% of the total return on the S&P 500 over the long run.  And in many cases you don't get the full gain of the index ever year.  Most are a total rip-off in this regard -- letting you think you are getting stock market upside, but no downside risk.  The costs are excessive, and the returns are marginal. For a full review of your "investment" go to and he will let you know what the realcosts and real returns are on your annuity.

Recent Investments Questions



a personal
finance question