20 years ago, wife & I bought a small annuity with same pitch. It was a loser! While in fact, it never went down, the increase after the first years was capped by the company at 4%, way below long term market performance. Was indexed to S&P growth, capped and excluded dividend returns. Hefty penalty to bail. We took max out without penalty (10%/year) until penalty period was over (15 years I think) then cashed out. BAD INVESTMENT!!!
Typical commission on an annuity to the salesman runs 10%.
My additional advice, take time to read Paul Merriman’s 3 FREE ebooks.
1. First-Time Investor
2. 101 Investment Decisions
3. Get Smart or Get Screwed (read this first!)
Found at paulmerriman.com
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