Saving & Investing

Should You Invest in an Annuity?

http://housecalls.ivillage.com/home/archives/2009/10/should-you-invest-in-an-annuit.html?ice=iv:mb:msg:ab

 

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CMAmy
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I've always considered annuities an expensive, and poor 'investment' prospect.

Carmen Ulrich does a very good job of explaining why.

Thank you for that video! I was duped into buying a variable annuity after my husband died with his 401k by an unscrupulous "investment advisor" who worked at my local community bank. He never told me that my money would be tied up for ten years. He did tell me that my money was insured if the marked dropped but neglected to let me know that it would only be redeemable after my death!!! I was shocked to find this out after I started to do my own research. I started looking into it because for some reason I felt the guy seemed too smooth and didn't quite "smell" right to me (unfortunately after I had already signed it away!!). The thing that really shocked me, and the thing that people should be aware of, is that the commissions these snakes make are astronomical!!!

For a while, these products were selling at an unbelievable rate across the country, not because they were a good product, but because the salesman were sharks. My shark made almost $15,000 off the sale of my husband's retirement fund!!!

Everyone, WATCH OUT BEFORE YOU SIGN!!!

Vonique

I found her piece to be far too watered down to be very helpful. True, annuities have high expenses. True, annuities have minimal liquidity. True, annuities should not be one's only retirement vehicle. However, not all annuities are wrapped around mutual funds. Some are extremely conservative, guaranteed plans that serve a purpose for certain investors.

The key IMO is to work with a financial planner, someone who works on a plan-and-buy basis rather than with an advisor who works from a buy-and plan strategy. Make certain all products fit into YOUR plan, not an advisor's plan for you.