April 8, 2024
Question:
I'm so confused about annuities. I've read they are good and that they are bad, so I don't know if they are right for me. Any tips?
Answer:
GREAT question!
Like anything in life, some annuities, in moderation, are a great solution for a financial gap; however, we would never recommend putting 100% into an annuity.
Sometimes we recommend an annuity product as part of a clients fixed income portfolio. That's how we envision them - annuity by definition according to Investopedia is "a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future."
But there are multiple types of annuities that exist, so the question might be, if it is right for you, which type should you invest in?
We've posted a grid on our website with a summary of the types of common annuities and who they might be suitable for in moderation: 2024 Common Annuity Products
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