No. of Recommendations: 18
Am I getting a snow job?

The short answer: most likely.

Annuities are not sold by financial advisors, they're sold by salesmen working for insurance companies. Look into the mirror and say 10 times: "An annuity is not an investment". Keep on saying it until you feel it in your gut. At that point, you can start asking yourself if there are any actual benefits to you and your husband in purchasing one. If you're not rich, chances are that you'll regret purchasing it later.

One problem is the 1.5%-3%! No, that can't be good. Can't you just buy a long CD (5+ years) at 5% or whatever they are? I mean, why do you actually *need* for this to be an annuity?

In any case, unless you have some specific tax issues that can only be addressed by an annuity, you're probably not going to be well served by buying one. An annuity is first and foremost an insurance product - not an investment.

Others may disagree with the above, or have more specific information about the type of annuity he is trying to sell you. But, in the end, it's still an annuity, and unless it specifically addresses problems you have, then you don't want it.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.