With respect to an annuity for income, remember that the insurance company, and especially the agents selling its annuities, gets your money before you get yours. You are paying for the profit of the insurance company AND the agent’s commission. Whatever of YOUR money is left after these payments, the insurance company gives back to you. If this makes you feel comfortable, then by all means, buy one. But be careful. Annuity products are complicated. All terms of an annuity contract favor the insurance company. Every additional “protection” of the contract, YOU pay. And The agent gets his cut right off the top. That money (again, it was once yours) will never be invested for your benefit. My attitude towards annuities (formed after I became an actuary - FCAS - ) is, if I had $32 million bucks, I would buy an annuity. With the 32nd million. Otherwise, not so much. Ed (dornsped)
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With respect to an annuity for income, remember that the insurance company, and especially the agents selling its annuities, gets your money before you get yours. You are paying for the profit of the insurance company AND the agent’s commission. Whatever of YOUR money is left after these payments, the insurance company gives back to you. If this makes you feel comfortable, then by all means, buy one. But be careful. Annuity products are complicated. All terms of an annuity contract favor the insurance company. Every additional “protection” of the contract, YOU pay. And The agent gets his cut right off the top. That money (again, it was once yours) will never be invested for your benefit. My attitude towards annuities (formed after I became an actuary - FCAS - ) is, if I had $32 million bucks, I would buy an annuity. With the 32nd million. Otherwise, not so much. Ed (dornsped)
Post: Retire Is a Verb
Link to comment from January 28, 2023