This is a subject that I had to consider when we were redeigning our investment plan for retirement. Back in 2005 we were very heavy invested in stcks and Mutual Funds. We could either continue on that path to take the advice of our new investment advisor that specializes in retirement planning.
We have 4 very large annuity contracts. From 2005 - 2008 they grew as the market grew. But in 2008 when the market crashed, had we stayed on stocks and MF we would have lost 40% and never recovered. Instead our annuity contracts switched automatically to a fixed rate at 7%. We actually did very well in the market crash.
As we are now ready to retire we can annuitize these contracts an get a very healthy income for life. In 2007 I thought we would never have to annuitize the contract and cash out at the propertime. The annuities provided a life boat for us and it was one of the best financial decisions we ever made.
People always say bad things about annuities because they lump them all together and make a quick judgement. If you find the right one it is great and a life saver, insurance on your hard earned financial "Pot of Gold"
|