2007-04-02 12:34:26 · 9 answers · asked by 3xalady 1 in Business & Finance ➔ Investing
Yes, if the guarntee is what you are buying the annuity for. What do you care what the fee is, if they guarntee the rate on original principle and a highwatermark feature which can guarntee your funds on the highest anniversary value...it doesnt matter what they charge you. Any GOOD mutual fund for comparison is gonna cost you 1.5% a year, do you think they'll guarntee your return, this is portfolio insurance that you are paying for, and peace of mind, for double the price of a GOOD mutual fund(Not a great one, they can cost more), Id say that its worth your time...
THIS MUST BE YOUR GOAL THOUGH, otherwise, if it is simple growth on your money, an annuity is probably not the best fit for you! At least paying for a guarntee on your growth in a variable annuity isn't.
I am in the business of selling these products, and I am the first to tell you that they are not for everyone or every situation, you should consider who is trying to sell this to you. Is this person from an insurance company, if this person is, chances are they are forced to sell as much of these things as possible to meet thier yearly quota, if this person is independent, they are sellingthis to you for the commission alone, steer clear, they dont have your best interest in mind.
An annuity purchase must be for the right reasons, or its a mistake, these reasons are, tax deffered growth, avoiding probate for your heirs, guanteed growth and income for life...any other reason you wish to invest for, find something else...
Now ask your advisor to answer your questions as honestly as possible, and see if they sound anything like ive told you here tonight...
take care
2007-04-02 13:31:39 · answer #1 · answered by Greg S 1 · 0⤊ 1⤋
No. money market accounts are paying more than 5% without any fees an without tying up you principal. Why would you want an annuity?
Why not talk to someone at Vanguard or Fidelity Investments about opening a money market account and receiving "annuity type" payments.
2007-04-02 12:55:50 · answer #2 · answered by john p 3 · 0⤊ 0⤋
Annuities are horribly bad investments and this makes it worse. Avoid it. No excuse as can build an annuity with simple investments much more cheaply and favorable. 5% is an awful return in and of itself. the broker already makes a fortune of the wrapped investments. Don't even consider this. Feel free to contact via answers or vegas_iwish@yahoo.com for free help
2007-04-02 18:31:09 · answer #3 · answered by vegas_iwish 5 · 0⤊ 0⤋
The short answer is: NO
Most people that buy annuities shouldn't. They do make great money for the sales reps. (The fee is more than 2.9%..... I don't have the time to explain)....... The guarnatees are usually not as you understood them... or just plain not worth it.
Read up on this subject. Forbes Magazine, Kiplinger's and Money Magazine have always had articles that explain the major reason why not to go this way............
2007-04-02 16:06:47 · answer #4 · answered by Common Sense 7 · 0⤊ 0⤋
Annuities are a very high cost investment. They have high fees and low returns. I would never recommend them to a friend.
2007-04-03 05:12:39 · answer #5 · answered by Quixotic 3 · 0⤊ 0⤋
Doesn't sound like a good investment. you can open a savings account or money market account for more than that without any fees. (ING Direct has nice savings accounts). Do a bit more research online.
2007-04-02 12:58:14 · answer #6 · answered by Sergio 3 · 0⤊ 0⤋
Ask your question again with more facts... tell us exactly what the fees and what the guarantees are.
2007-04-02 12:52:04 · answer #7 · answered by tyates999 2 · 0⤊ 0⤋
2.1% gain on annuity not too good.
2007-04-02 12:38:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋
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2015-02-10 12:21:20 · answer #9 · answered by Lissie 1 · 0⤊ 0⤋