No. of Recommendations: 10
pauleckler posts,

You said life annuity. Most of them pay for the life of you and or your spouse. You can also get one that will pay for say 10 yrs, and let your other funds grow and then buy another one later (when hopefully interest rates will be higher and you will get more for your money). You can also buy a larger one later to provide more income ideally with profits from your other investments.

These are all immediate annuities. There are also variable annuities, where you pay in for a while, invest the funds in mutual fund like investment choices and then annuitize for monthly payments later. These tend to be expensive and highly profitable for the salesman. Regardless of the sales pitch, avoid them if you can. There are better ways to invest your funds.


Immediate life annuities also have very high costs (20% to 30% of the purchase price is lost to the insurance company's fees, expenses, and costs), but are not disclosed to the buyer since they don't fall under SEC regulation.

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.