Are Annuities Good

Is an Annuity a Good Investment.

Are annuities good. An annuity can be a good investment if it is part of a well-structured retirement-income plan and if you understand what it does for you and why you are buying it. For some people an annuity is a good option because it can provide regular payments tax benefits and a potential death benefit. Annuities provide a fixed monthly income either for a set period of time or for the rest of your life.

It depends on your needs and on the type of annuity. Some are turning to annuities as retirement income in case pensions savings and Social Security fall short. Annuities can help prevent you from running out of money late in life and if youre worried about inflation eating away at your moneys purchasing power annuities.

Annuities pay extremely high commissions often 7 or higher of the total amount. An annuity is a way to supplement your income in retirement. Annuities Accessed Dec.

In my opinion the annuity investor is easily confused and dazzled by projected return charts and. If the chance you outlive your savings turned out to be small say less than 5 then purchasing an annuity might not seem such a good deal. Different types of annuities offer varying degrees of risk.

However there are potential cons for you to keep in mind. Heres why their use is still hotly debated in the financial industry. Are Annuities Good For Retirement.

Annuities can sound enticing when pitched by a salesperson who not coincidentally makes huge commissions selling them. An annuity may make sense if you continually max out your annual contributions to a 401k IRA or other retirement account as an annuity can give you another avenue for retirement savings. To be certain this unique investment product offers legitimate benefits.