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Investing/Strategies / Retirement Investing
|Subject: Re: ??? about annuities - Warning: long||Date: 2/21/2011 10:26 AM|
|Author: Watty56||Number: 68518 of 76883|
A few ideas on how to approach this;
1) Just like with a major medical decision, getting a second opinion is a good idea. Before he buys anything it would be very good to have a different fee only financial advisor who is paid by the hour, not commission, take a look at the proposal.
2) If he has not started social security yet, then delaying the start of social security, or suspending social security to get a larger monthly check is in essence buying annuity. This is usually better than an annuity that could be purchased for the same amount.
3) If his is dealing with a large amount then buying several annuities from different companies will reduce the impact if one of the companies issuing the annuity goes belly up.
4) If an annuity is right for him, then the question becomes when is the right time to buy it. If waits until he is older then the cost/payment will be much better. Right now interest rates are still near generational lows and interest rates are a major component in determining the cost of an annuity which makes it a risky time to buy an annuity. If he waits until he his older to buy one, then in addition to getting a better payment because he is older, the interest rates may be higher then too.
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