No. of Recommendations: 0
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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.