Quote:
Originally Posted by bern916
You are wrong. Not ALL annuities are bad. We have a 4% 5-year FIXED annuity. We paid ZERO fees. No market exposure. Avoids probate. Grows tax deferred unless I choose to take the interest annually (or monthly).
Should all of someone's money be in fixed annuities, of course not. But it's a conservative option that can serve a purpose in anyone's retirement portfolio.
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Not if you don't know what you are buying. Many people who buy an annuity have no idea what they are buying, and the insurance company will not even allow them to read the contract until they give them their money. There are television commercials that sell annuities, but they never even mention the word annuity. I have reviewed investment portfolios for people, and when I tell them that they have an annuity, it is the first time they are aware of it. They think they own stocks and bonds in their own name, not a life insurance contract. Some say that they bought it because they trusted a friend or relative to invest their money wisely. In some cases that could be true, but mostly the salespeople are selling annuities because it is their product that pays the highest commission, and often it is not appropriate for the client.
Is that any way to sell a financial product?