No. of Recommendations: 3

As others have said, it is most likely a salesman who is making this recommendation, not someone who 'advises'.

How relevant an 'annuity' (and there are many different kinds of 'annuities') is to the financial needs of your niece depends on several factors, to include:

1. The amount involved
2. Whether she requires the inheritance to support her retirement lifestyle or it is an added amount that she doesn't require.
3. Her personal goals and need for cash flow, including potential future long term care.
4. Her willingness to take investment risk
5. When she needs it to start working for her
6. Whether it is important to leave a legacy to heirs

I would suggest, as others have, that she make an appointment with a local Fee-Only CFP or CPA/PFS financial planner. You can find these by googling NAPFA or the Garrett Financial Planning Network. Her "work up" (data collection and analysis) will cost several hundred bucks, but you can be assured that it will be objective and in her best interest....not the best interest of the salesman, which I'm sure is what she's getting now.

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.