Quote:
Originally Posted by Babubhat
Vanguard or Fidelity. You want the lowest fees. Why pay an advisor who adds no value? There is nothing special about annuities other than unnecessary fees. You are paying for their ads, free dinners, suits and other extraneous costs. It’s your money. Belongs in your pocket. If the SEC did their job these products would be banned
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Not the SEC, but Congress. The insurance lobby spent billions to convince Congress to pass a law that allows life insurance products to act like a retirement plan, so that the earnings are tax deferred. All annuities have a minimal death benefit that allows them to be classified as a life insurance product, even though the death benefit is practically worthless. Therefore, the earnings on an annuity are tax deferred. All life insurance products must have a death benefit to have tax deferred earnings. Tax deferral is one of the primary selling points that annuity salespeople use to sell annuities.