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No. of Recommendations: 1
Fletch52: "Fools: My wife and myself have been finding ourselves talking with a new investment advisor. What we like is that this individual is a registered investment advisor rather than a broker. There will be no commissions just paying a percent of assets."

Percentage of AUM can be way more expensive than commissions. In addition, you may no be paying your advisor a commission, but depending upon what assets he is purchasing, you may still be paying a commission or fees on those assets.

However what they are recommending is an investment I simply don't understand even after reading two brochures on the topic. Simply this is being suggested for our Roth IRA's only. It is a fixed index annuity. The company is Allianz."

One primary advantage of a deferred annuity is its tax advantages; you already have tax advantages because the funds are in an IRA. Do you frequently wear both a belt and suspenders?

"They are promoting the income rider so we would be guaranteed 7.2%. I understand we are committed to 10 years before touching the money without penalty or surrender charge. There are 3 different crediting methods and 4 different indexes."

Sounds like a complicated methodology to hide funds that will be siphoned off by fees and expenses.

I already dislike the sound of it. Would you be annuitizing immediately or would annuitization be deferred?

Regards, JAFO
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