would you recommend purchasing an annunity from an insurance company for retirement purposes?

Answer 1

Never.

Answer 2

Only From A Very Reputable Insurance Company,Probably Safer With Treasury Notes From Uncle Sam..Municipal Bonds ETC.Retirement Is Serious Investment,To Many Thieves In The World...E.G. Enron Among Others

Answer 3

Annuities are the biggest commission earner for insurance sales-persons and brokers. 95% of all annuities are sold to people that won't benefit from them.

Consider this;
If you buy the S&P500 index & hold it for twenty years and then cash it in;

Inside an annuity you paid very high internal fees & upon casshing in you pay taxes based on your income bracket.

Outside an annuity you'd pay taxes no higher than the capital gains tax. Today that rate is 15%. There's no penalty for early withdrawl. Expenses can be as low as 0.09%. Most of these funds are sold with no sales commision. Or added insurance fees.

You'll never read an article in magazines like FORBES, KIPLINGER or MONEY saying how great Annuities are.

THEY ARE A RIP OFF FOR MOST INVESTORS!

Answer 4

Only if you have money to burn; and it depends how old you are and how healthy you are. If you are already past retirement age, have a lot of cash, but just want to make sure you'll have income for the rest of your life, and don't care that there's nothing left for any next of kin, an annuity is the way to go.

If you haven't retired yet you can get much better returns over the long term with a simple index fund and probably better with bonds or even treasuries.

Answer 5

I would think some of it almost certainly should go into a fixed annuity. You do want to make sure the company from which you purchase it is financially sound, but as long as the company is there, it makes sure that you have at least some money coming in for the rest of your life, no matter how long that is.

It's worth remembering, though, that you may want to have some savings for other large purchases. Keep some of it more liquid, but put some into a fixed annuity.

Answer 6

The answers you have received so far are definately referring to a Variable Annuity! I would not recommend a Variable Annuity unless you like a lot of risk. People have lost their shirts in Variables that they got into right before the market went in the toilet. A fixed Retirement Annuity is recommended by most Financial Experts that like to see their clients get higher interest returns, and tax deferred growth. Do not go through a financial planner or bank to invest in Fixed Annuities. They charge fees and the interest is not as high because they are the middle guy! I work for a company that works solely for seniors and have for over 125 years. We offer great, flexible, easy accessable Fixed Annuities at no cost to our clients! Please contact me and I can put you in touch with someone in your area if you wish. Unfortunately most people are very uneducated in the area of Annuities and always give their advise based on the Variable or Equity Indexed. Please educate yourself on the Fixed, I'll help as much as you'd like. My clients couldn't be happier.

Answer 7

it is right desicion to purchase annunity for retirement.
But choose insurance company which have good strong financial
background.
In India Lic, Sbi life insurance, icici pro,HDFC SLIC are stable and strong. but i suggest choose pvt company for good service.
and i think HDFC slic is most honest company and it follow code of ethics seriously.So go & call 4 detail.