You may have heard of annuities before, and wondered what are annuities and whether should you invest in them. Annuities have a reputation, and to a lot of finance people it isn’t a very good one. It’s a fact that an awful lot of financial advisors (not to be confused with annuity salesmen) don’t recommend them or even like to talk about them very much. They are more likely want to talk to you about investments in stocks, bonds, and mutual funds for growing your wealth. They’ll also talk about participating in a 401k plan to combine with your Social Security benefits, pension, and brokerage accounts for your retirement program.
That may be a good plan for many people. But it is wise to consider an annuity or at least feel that you have examined them and understood what they are and why you’d use them before you rule them out. For some people, it can be a real complement to their financial security and retirement plans. And that raises the question, “Do they make any sense for you?”Continue reading“What Are Annuities and Do They Make Sense for You?”