The last two posts are the most accurate. Not for everyone, and the true "catch" is that you are only getting the "guaranteed" 7% if you agree to take the money out as a long term income stream - which usually does not amount to more than 5% per year. If you treat it like a regular investment and withdraw more in any given year, you not only lose the 7% "guarantee", you also pay penalties, which can be very steep. The sad thing is that these annuity peddlers are allowed to advertise things to retirees that say things like "7% guarantee" and just neglect to mention all of the rules that apply. They tell you all of the benefits and hope that you sign on the dotted line and don't read the fine print about the negatives. If you have other investments, a small piece in something like this might make sense, but putting all of your eggs in this basket can leave you very unhappy.
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