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Wlombo, you asked:

<< Hmm....these are all good suggestions. I am concerned about one thing though....the pricipal at death. It can be set up for benificiary, or I believe put back into the estate. Not sure but I will check. >>

The principal can be guaranteed against any investment loss through the addition of a rider. So, you will want to discuss this in detail with your advisor(s). For an immediate annuity where you're receiving an income, the principal can also be protected when you select a “Period Certain” option. This too should be discussed in some detail with your advisor(s).

<< These are all good questions to ask. I trust the advisor that I have...yes she is making a fee from the Insurance company, and I am paying up front for variable...but I think if I am comfortable that she will continue to watch my portfolio....and I am spending a little more in 'fees' for someone I trust, I guess the upcharge might be ok if the return and customer service is worth it.

Any more questions to ask or more 'red flags' to watch out for before I sign on the dotted line? This is rather scary!

If you and this advisor have not been discussing the estate planning issues, then you'd better find a good experienced advisor who you can discuss this with BEFORE you sign on the dotted line. Annuities are not good vehicles to leave to heirs. And if setting aside something for heirs is a particular issue, then looking at a permanent life insurance contract as part of this plan may be may be in order instead of one of the annuities (because of the death benefit leverage).

Be sure to take your time, there's not rush when it comes to this kind of thing. It's your money and you'll want to have a reasonably good plan in place that can achieve what you expect.

Remember this too when it comes to planning . . . give any 10 planners/advisors exactly the same set of issues and data and you'll get 11 different plans. The 11th being the one you finally settle on.
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