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Originally Posted by l2ridehd
This does not answer your question, but there is only one person who benefits from an annuity and that is the sales person selling them. You should only consider an annuity if you are so undisciplined with money management that you always go the wrong way, buy high and sell low. Annuities bring no added value to the buyer. Only to the seller.
You say you want to avoid market risk and yet your willing to put everything into a single insurance company? To me that is a major risk. Even if you buy three different ones from three different companies you are still at a very risk position. At least with stocks and bonds you can buy total market funds and be spread across many thousands of companies.
I would strongly suggest you are moving into a much higher risk position. Remember even AIG failed except for a government bail out. Doubt that will happen again.
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You are correct; it didn't answer my question. I am considering annuities but I do not consider myself as an undisciplined investor whatsoever. I have had a fee based financial advisor who managed my money for the past 10 years and I have done okay in the market, but I do not want to live with the volatility any longer in today's markets. That's a personal choice.
Regarding your comments about risk in insurance companies, research is always a prerequisite before doing any investing. Baron's had a great article about the top 50 annuities and insuance companies. Federal law requires insurance companies to establish reserves for annuity contracts and those reserves are audited regularly. AIG went bankrupt but those who had annuities with AIG DID NOT LOSE ANYTHING.
I have not decided to go the annuity route but am doing my homework based on facts and professional advice from experts other than the firm who is trying to sell me these products. I am asking for suggestions if anyone has worked with someone local.