Is it worth my time to buy annuities at 33? Can I have multiple ones?

Question

Are annuities just for older persons to assure themselves of some sort of pension income, or can they be bought early and accrue from there?

Answer 1

You've gotten some pretty good input from the others who have responded to your question. I too will weigh in on the side of annuities are not the best option. The main reason I say this is because of the higher fees and the longer surrender penalty period as compared to mutual funds. If you are considering a fixed annuity you will find that the rates are good as compared to a CD but they are well below the longterm track record of a well managed mutual fund. You will also pay higher fees and taxes when you withdraw funds out of the fixed annuity so that reduces the return that you receive. If you are considering a variable annuity the comparison is even worse. Variable annuities have the same fees associated with managing the investments that mutual funds have. In addition to that, annuities have a cost of insurance fee associated with it that mutual funds do not have.
People selling annuities will give you the point that annuities grow tax deferred whereas you have to pay taxes on capital gains and dividends every year with a mutual fund. The truth of the matter is that a very well managed growth mutual fund should be tax efficient. (very little capital gain and dividends) Finally I will discuss the surrender period associated with annuities. I have seen some annuities with surrender periods as long as 12 years to avoid penaltys. Effectively, you are agreeing to stay in this investment for up to 12 years without regard for the kind of performance you are seeing from this investment. If you decide to pull your money out you get whacked with huge penalties. Some annuities have addressed this issue and shortened their surrender period but many still remain as I have discussed. I would not say that annuities "never" serve a useful purpose but I would say that for the many people who currently own annuities, the vast majority would be better served in well managed mutual funds. I hope that this was helpful. Good luck.

Answer 2

There are multiple options out there in the market and before you invest in an annuity may i suggest that you look at them. Annuities have an expense compenent associated with the mangement fee of the annuity per se. So if you purchased an annuity and invested in the mutual funds within the annuity - beyond the investment management fee of the funds- the insurance company that manages the annuity also charges additional fees for the annuity portion. The annuity has a deferred component on the gains but you can combine other investments out there that will provide more flexibility and better returns. Look at a Roth IRA and funds or equity traded funds outside of an annuity. LOTS of flexibility.

Answer 3

Annuity earnings isn't taken care of as a capital benefit, that's taken care of as basic earnings. Annuities are undesirable, maximum folk don't comprehend that that's a gamble which you will die merely before the money. superb to talk to a financial planner earlier doing something. Annuities are fraught with costs which will drag down your returns to what Treasury bonds pay.

Answer 4

Yes, annuities can be bought at your age & yes, you can have more than one of them.
I'm looking into them right now also. Its not that annuities
are a bad idea, it works just like a pension. Its that the investment you have to make first, requiries a commitment you must make now, for a payoff that you won't see for years.
Once you've bought into it, its difficult to change your mind
if you find a better investment at a future date.

Answer 5

Annuities are hardly ever a good idea for anyone. They have high fees and surrender charges. When you withdraw the money you have to pay taxes on it at your ordinary tax rate, instead of capital gains raites which are usually lower. Your heirs have to pay taxes on it too at their ordinary tax rate when they inherit it, and there is no step up in bases for annuities like other investments and assets.

Answer 6

I am a young woman and I have always been told NEVER to get an annuity! research them and you will see why for yourself...get a rothIRA or just an IRA...much better!

Answer 7

NO, you are too young to consider that ption, your time horizon too far away.
max out 401k, traditional IRA, or Roth IRA first, take the tax incentive step first. You could invest your own by open the regular brokerage account. Maybe study how to invest the right way, you could make more money than annunity make

yes, you should learn 3 things:

fundamental analysis( economic report,management,competition,... tell you what to buy

TECHNICAL ANALYSIS( CHARTS+ technical indicator) tell you what to buy

sentiment analysis (bull/bear ratio, put/call ratio) tell you how moody investor can affect your investment too

Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 71,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 8

annuities stink

Answer 9

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