Are Annuities right for you?
Some people just don’t understand why annuities are chosen by more and more smart savers.
Those people are often purveyors of stocks, bonds, mutual funds, and so forth. Those financial products are called ‘securities,’ which is interesting.
Then, there are radio personalities, opinion writers, and others who proclaim that “annuities are lousy investments.”
They are wrong. All of them.
Now, if they said “variable annuities are (pick your adjective) investments,” they might be right.
Annuities that are fixed annuities, fixed indexed annuities, immediate annuities, deferred annuities, and so forth routinely describe the guarantees in those contracts.
Securities actually carry some level of risk that the investor could potentially lose some or all of their investment in ‘securities.’
Therefore, securities are inherently insecure. The risk could be smaller or larger from time to time. That doesn’t mean that securities are always a good idea, or always a bad idea. If you can afford to lose some or all of your investments (securities) and it won’t affect your lifestyle or financial well-being in a negative way, then good for you. You might want to consider securities as part of your financial plan. But if the thought of the value of your securities losing 10%, 20%, 30% or more of their value just before you need that money bothers you, you might want to take a deep breath.
Consider the potential downside to owning securities, and not just the sales pitch from a stock broker, mutual fund salesman, or anyone who doesn’t clearly express an understanding of the intrinsic difference between securities and safety. Between investments and fixed annuities.
Questions? Are Annuities Right for You?
Maybe. Maybe not.
After checking the facts, you may be pleasantly surprised by reality.
And that’s good!
Feel free to ask about specifics.
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