Should I consider an immediate annuity for retirement planning.?
Wednesday, June 30th, 2010 at
9:55 pm
I am years from retirement, but an immediate annuity appears to offer a higher withdrawal rate than I can guarantee on my own. If I plan for an annuity it can help me achieve my goal. Is that a good strategy?
Filed under: Retirement Planning
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I don’t like annuities.
Some charge as high as 5% – all this to give you a check each month.
Do not go through an advisor for this.
Annuities are the biggest money makers for them – that’s how they buy their Lexus’s.
If you like annuities though – Charles Schwab offers a super low cost ones.
Fidelity Investments probably have some good ones also.
These discount brokers are not out to get you.
Go the schwab website and spend a little hour looking around and compare.
If I wanted an annuity that’s the way I would go.
Don’t get ripped off – also google annuity cons, and read, read, read.
I would also like for you to go to the bookstore and get a book on the subject.
The fees run in the thousands a year for some annuities – the least you can do is spend $20 on a book.
I think Schwab has an annuity that automatically buys laddered cd’s.
Be careful with high returns in variable annuities in a volatile market – you can lose it all.
Schwab and Fidelity have been around for 30 years – trust them.
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Now would be a horrible time to get an immediate annuity. Interest rates are the pits. And that’s the problem, it you put all your eggs in one basket and have to purchase You need professional advice to help you create the best mix for your retirement investments.
Certainly annuities can be a part of that mix, particularly the new variable annuities (from a reputable company and reputable advisor) that can create a guaranteed lifetime income stream, no matter what the stock market may do. One caveat about annuities is to realize that long surrender charges benefit no one but the salesperson. Try not to buy an annuity that has more than 4 years of surrender charges.
You really need to educate yourself and a reputable advisor should be happy to help you.