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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77872  
Subject: Re: investment choices Date: 6/2/2011 1:07 PM
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Watty56 writes,

Generally any annuity other than a low cost single premium immediate annuity (which is like buying a pension) are poor to terrible choices because of all the restrictions and fees and commissions that the insurance companies load these with. In addition a major factor in determining how much an annuity pays is the current interest rates. Just like the low rate make it a generally favorable time to get a mortgage; it also makes it a generally unfavorable time to lock your money in an annuity.


Even a "low-cost" single premium annuity is a bad deal for most people. For someone of average mortality, about 30% of the purchase price of the annuity is lost to the insurance company's various fees and costs.


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