Annuities – Good or Bad? I really need to know
My husband has a pension coming to him. I don’t. I have some 403b/IRA money in place, but I’m concerned that I will outlive it. So I have spent some time studying annuities, talking to people about a variable annuity that I “can’t outlive.”
I get two kinds of advice:
A. They’re great. You should put all your money in one. This, of course, if from the “financial advisor” who sells annuities.
B. They’re awful. No sane person would touch them. This is a lot of people, including MarketWatch commentator Paul Farrell, who recently bashed annuities. If you read his article, you would run from annuities.
So I read the comments about his article (all 83 of them). Maybe they’re not so bad. I also talked to an advisor from Fidelity (they don’t really sell annuities, and he said they are on salary, so they don’t have any financial incentive to sell them.
So now I’m really confused. Have any of you bought a variable annuity? Did you think the fees were too high? Do you have any recommendations for me?
4 Comments
Fidelity may be on “salary” but did he mentions the BONUSES he gets to steer you in to his products? Of course he didn’t!
Most media have no clue when they write or talk about Financial products and they just parrot what some Stock Broker told them at a cocktail party.
Thanks! I never knew this. I do know the media aren’t any more informed than the rest of us. I find I have to do my own thinking and reading and talking to lots of people.
The guy from Fidelity did not tell you the truth. I work with advisors there and they do get compensated more for certain products. I’m a CRPC (Chartered retirement planning counselor) and AWMA (Accredited wealth management advisor), also a member of the FPA (Financial planning association). I own my practice in Atlanta and I recommend annuities where it make sense for the client. I don’t know your situaltion so I can’t recommned anything to you, but my parents have annuities and I will too, when I get to an age where my major concern will be income. Old annuities are really bad, but due to major compliance rule changes, today’s product is much better.
A
I sell indexed annuities and my clients love them. As a matter of fact,my clients didn’t lose a DIME while the “experts” were wondering what to do for their clients. I think the media should be ashamed of themselves for bilking main street out of TRILLIONS of dollars.SHAME ON YOU.