I am in my mid 20's and always looking for a good investment. Is it a good idea for me to buy an annuity? thank you!
2007-03-03 10:55:19 · 7 answers · asked by Paul Frank 3 in Business & Finance ➔ Investing
after reading what Doing the Right Thing has posted, can I switch the annuity to an IRA?
2007-03-03 13:05:05 · update #1
For your age, buying an annuity is a very bad idea because of the high expenses associated with it. If you were in your 50s and have very little money saved for retirement, then I would consider a variable annuity. Other than that, you should open an IRA account instead. There are two types of IRAs (Roth and Traditional). Both grow tax-deferred, but only Roth has tax-free withdrawals after age 59 1/2.
An IRA is just an account to hold your investments. You can try to pick what investments you want in it from the financial company, but I only recommend that if you truly know what you are looking for. If not, you should work closely with a financial representative or advisor to help you find the suitable investments that meets your investment objective.
Good luck in investing.
2007-03-03 11:51:41 · answer #1 · answered by Anonymous · 5⤊ 1⤋
I would not go to the annuity idea at your age. I am talking about a variable annuity. The costs (expenses, etc) will kill your profits over the long or short run.
You can invest in the very same funds without using an annuity just put them in IRA's and your cost can be cut substantially while you are investing in the very same funds. (buy no-load funds)
Once you are investing all you can in a 401 and IRA's then you might look at Annuities.
2007-03-03 16:21:18 · answer #2 · answered by Brick 5 · 0⤊ 0⤋
A variable annuity is an investment product the place you assemble your next egg in a tax deferred shape. on the time of withdrawal, you're allowed to purchase an annuity producing a delicate flow of income. i will't say that variable annuity is undesirable because of fact each and every person has diverse desires and needs. I advice you to compliment a sort of annuity that suits to you. according to danger variable annuity is undesirable for others yet not for you. basically you are able to answer that.
2016-10-17 05:05:48 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Annuities are ridiculously expensive to administer, and you suffer for it. I believe the only redeeming quality of an annuity is for an older person looking to secure a guaranteed income stream until the reaper shows up to collect his due.
I'm sure a super-smart financial advisor will probably go into their pitch about how great annuities are for anyone willing to buy them, but I think my reponse is probably the most practical application of prudent use of an annuity.
Fact is, if a broker said it's great- it's probably great for him in the commission department.
2007-03-03 11:09:17 · answer #4 · answered by Showbizzz 2 · 1⤊ 0⤋
No they cost to much, Invest in a mutual fund. Vanguard Equity Income fund. Go to Vanguard .com
2007-03-04 00:08:11 · answer #5 · answered by ? 6 · 0⤊ 0⤋
i concur...from my understanding annuities have ridiculous fees
2007-03-03 11:11:22 · answer #6 · answered by Anonymous · 0⤊ 0⤋
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2015-02-05 13:45:28 · answer #7 · answered by Bernelle 1 · 0⤊ 0⤋