Quote:
Originally Posted by Bobnfl
Our adviser is suggesting a Guaranteed Annuity for some extra monthly income. Please inform me of the pros and cons. $265k for a $1675 monthly income for life. Break even is at 13yrs. Is it worth it. It is with a AA+ rated company. There are no fees but once invested there is no refund or backing out. You have it for life. We are now 70yo. 3 years from RMD. Help us make a decision
Thanks for any help you can give.
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Over the years I looked at buying an annuity and each time I started to get into the details I found they were very expensive. It always sounded too good to be true. Annuities are very complex insurance products which are commission driven. In addition to the high commission fees it limited access to my money if I needed it for a major emergency. I would suggest that BEFORE you invest, ask two other investment advisors their thoughts. You can buy CDs today and get a good rate on this money. You can tell they are not for me. Good luck - do more research!