Annuities? DON’T.
Annuity is just an insurance policy. Not a great investment.
Go to a financial adviser.
You can buy an immediate annuity directly from many respectable insurance companies, without going through an agent. They will give direct quotes for the various options.
Or, you could invest the money yourself, which would probably produce a greater total return.
Stay away from annuities. As mentioned, it is insurance. Annuities are never bought- they are sold
Unless you need the money right away, I would avoid annuities.
You will be vetted!
Hear that? Severe penalties for bad advice!
Seriously, an annuity is GIVING your money to a company and letting them dole out a set amount to you every month. If they invest it well, they keep all the windfall. If you die in a year, they keep it all. If inflation hits 15%, you may or may not get an monthly increase, depending on the fine print you sign when you GIVE YOUR MONEY AWAY.
The correct solution: keep tight control of your money. Learn about the stock market. You worked hard to save it. Now work hard to manage it and make it grow.
Go and ask at bogleheads. Lots of good advice.
Triple ‘A’
Always Avoid Annuities
Forget the annuity and take it in cash.
You really need to find a financial adviser who can assess your situation and advise. If you’re doing ok without this windfall, consider an IRA with index funds. They’re cheaper vs. other mutual funds and made up of the best companies today like Apple, Coke etc. If they lose $$, everyone is losing $$.
Annuities are generally not a good investment, but may be suitable for some people. If you buy one - make sure you understand what will happen in case of inflation.
https://realinvestmentadvice.com/the-worlds-most-misunderstood-investment-part-1/
https://realinvestmentadvice.com/the-worlds-most-misunderstood-investment-part-2/
Are you thinking of buying or getting rid of some you have?
If you’re thinking of buying, don’t.
Annuities have been useful to me because there is limit on how much you can put annually in IRA’s. With Annuities, one can put unlimited amounts. And there are NO yearly RMD’s (required minimum distributions from IRA’s after age 70.5).
I bought a whole bunch of VARIABLE annuities and put the funds in index funds. Those have grown a lot, completely tax deferred. The ONLY negative to me with annuities is, there is a 1/4% annual charge for death benefit. That is not issue with stock index funds, but if money is sitting in money market funds, with today’s low interest rates, you will lose as much as 1/4% every year. Overall I love them for the tax deferred qualities and no RMD’s.
Noooo annuities....what my husband, who is financially astute tells anyone who asks.
To your answer is NO.
Go to a young tax man.
Don't take an annuity, period. The person who makes the most money on it isn't you, it's the person who sold it to you/sold you on it.
You want to see a Professional Financial Advisor who acts as a Fiduciary, and is fee based.
By seeing a Professional Financial Advisor who acts as a Fiduciary, they will talk to you about your total investments, goals, etc.. and help you determine what to do. You pay them a fee for that service, and they will not sell you anything. You're paying for their professional advice based on your situation.
In 2009, with extraordinary luck, I bought an annuity at the very bottom of the stock market. That same week, the market began to come back and I made 140% in ten years.
However, once I discovered that I could lend money to real estate investors and make 10% per annum, I liquidated the annuity over time. Any cash I have is now loaned to fix n flippers, and secured in lien position on their rehab properties. If they fail, I own the property.
If you’d like to learn more, please message me here and I’ll show you how. I’ll never go back to stocks!
Have the same thing going on with my brother. His financial adviser got him to spring for a annuity. I have looked into the investment this guy put my brother in and told him to fire him and let me put him with someone else.
I think the guy got my brother to buy the annuity so he could get a big fat commission , not to really help my brother in his long term invesments for retirement.