I have met very few people who have purchased annuities that end up being happy with what they have gotten themselves into. The long term health care annuity may be an exception. The 2 or three inches of fine print on the back of the second page of the application expains how you are about to get screwed but people buy into "safe" and "guaranteed". Variable annnuties are not safe from market disruptions and fixed annutities are not safe from interest rate risk. You are guaranteed to be forking over 10% or more up front in commissions. You will pay the same 10% or more to get out of the annuity which is why most people never do. The sales men always tell you "you could be doing so much better". Annuities are excellent for the salesmen and insurance companies that sell them. Amerisuprise... great commercials for annuities, annuities and more better annuities! The commercials don't tell you this. That should be your first warning clue. And lots of load mutual funds to recommend as well. Annuities generally are not very good for your estate either. Trusts and good estate planning attorneys are far superior to annuities. They even enable you to reach out from the grave.
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