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Hi, I've read several posts on here about annuities and how bad they are especially when kids inherit them. Four or five years ago, our insurance man said it would be to our advantage to roll over our IRAS into his company so we could be more consolidated. We have several IRA's in different banks - depending on the interest. So I did one of them when it came due. He turned it into an annuity and said it was better than an IRA in the bank. The interest was a little better, but not much, plus we pay $30.00 a year for them to "hold" it. Is this a good idea or should I, or can I roll it out of there back into a bank IRA earning higher interest? From what I read, annuities are hard to get out of - please explain. We are in our upper 50's and need to think about the tax on our kids. We've not added to it ever, just regular interest that has been added.
All help is greatly appreciated.
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Lanta -

You asked about IRA annuities...

If you're concerned about taxes your heirs will pay -
it doesn't matter where the IRA is held, tax law will treat the funds the same (strategies to minimize taxes are another story, however).

The $30 annual fee might be above average in cost - it depends upon the insurance company.

The rate of return certainly can vary - among "Fixed Interest" Annuities you could see all sorts of rates (but often they beat the bank). If you look into "Variable" Annuities you'll see other investment options (subaccounts) that resemble mutual funds. These may be used to diversify & improve the yiels (if you assume some investment risk).

Hope this helps, PP
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