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Originally Posted by Bobnfl
Who do you have to manage your money if you do. We have Fidelity and am wondering if it is worth it or is there a better way. Are local investment companies better? What is the normal charge at other companies? I know Fidelity charges over 1%, is that too much. They have started pushing annuities more & more. Which I try to stay away from. Please give me some insight into what other people do.
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Many people do not know the difference between a stock mutual fund and an annuity. The owners of Fidelity mutual fund shares have actually ownership in the stocks that make up the fund. But, if you buy an annuity, you are buying a life insurance contract from an insurance company that may or may not have any underlying stocks. Theoretically, the insurance company can do whatever they want with your money as long as they pay you back in accordance with the terms of the contract. But, unlike a mutual fund, you have no actual stock ownership with an annuity. But, the most important thing to know about annuities is that they are often "pushed" by advisors because they pay the highest commission to the advisor than almost any other product.