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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Your advisor is representing himself the fees and commissions are high on annuity's. Invest in T bills and you get over $1100 a month and when you die the $265,000 is still there for your kids. With an annuity when you both die the company keeps the money still left. If you want the full $1675 a month just withdrawal $500 from the principle each month and you won’t be at zero for over 30 years.
An advisor that truly has your best interest at heart will never recommend an annuity.