What do you think of a variable annuity as an investment for people who are about to retire? What we have been reading is that they should be avoided in part because of so many fees. Our broker is strongly suggesting one through Principal Financial Group and it is making us nervous. It is called the Principal Investment Plus Annuity/Principal Income Builder 10. Thank you.
Terry Says: Your broker is suggesting that he/she will earn a big fat commission on your retirement investment! I have nothing against variable annuities. But broker-sold annuities typically have higher costs and fees. What you need is a comprehensive investment plan for your retirement years AND a withdrawal plan intended to make reasonably sure that your money will last as long as you do!
I recommend contacting T. Rowe Price at 800-638-5660 and asking about their Retirement Income Planning service. It is free if you decide to invest some money with them — and well do a comprehensive, PERSONAL plan, based on your situation, goals, fears. It uses sophisticated technology to sort out the probabilities and come up with a suggested investment and withdrawal plan. Try it before making any decisions.