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Originally Posted by llamanca
Just curious why you say this. My Advisor suggested transferring some of my investments to an annuity. Thank your for sharing your thoughts.
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I suspect that your advisor recommended an annuity because it has one of the highest commission rates of any investment that he/she can sell. Typically, someone who sells an annuity will receive a commission of about 10 percent of the money you "invest". Some people don't realize that an annuity is actually a life insurance policy issued by an insurance company. So, it is a "contract" rather than an actual investment in real assets like a mutual fund, stock, or bond. Annuities have very high built-in management fees, and they usually have high surrender charges, that require you to pay a penalty if you decide to withdraw your money within 7-10 years.
I would suggest that you ask your advisor to give you a copy of the "entire" annuity contract for you to read (not just the brochure). Chances are that he/she will refuse to do it. They know that if you read the contract in advance, you will probably refuse to sign it. So, they require you to buy the annuity before giving you the contract. Not a good way to sell a product.