I read on one of the yahoo finance article about a one time investment (25,000 USD) annuity. Only thing is you get paid only after you are 70 or 80 years old, but you will get paid as long as you live. I no longer remember anything about that.
Any ideas, what was that annuity, any information or links are appreciated.
2007-05-26 11:16:22 · 6 answers · asked by desibandha2001 2 in Business & Finance ➔ Investing
Be very careful. Annuities are the #1 financial product complained about the most in the US. It's also the highest commission maker for Financial Planners. It's estimated that over 85% of annuities are miss-sold & prove to be of no benefit to the buyers.
Make sure it's right for you. All insurance companies sell them (they like to make money). You're better off seeing a stock broker (not always, but at least better than an insurance rep.). DO YOUR HOMEWORK.
2007-05-26 12:51:47 · answer #1 · answered by Common Sense 7 · 0⤊ 1⤋
You are confusing two different things. Both are annuities. An immediate annuity gives you income for a certain period, or life. You can get current quotes at www.immediateannuity.com.
The other is a deferred annuity which wraps up a fixed return or something like a mutual fund into an insurance product. These are generally very bad investment choices as the fees are extremely high and almost never worth it.
2007-05-27 10:32:48 · answer #2 · answered by Steve B 2 · 0⤊ 0⤋
Annuities remain one of the WORST places to put your money...the reason they get recommended so often is that they pay terrific commissions to whoever sells them to you.
The main "selling point" is usually that "you will never lose your initial investment"...If you think about it, that's true if you just put your $25,000 in a shoebox under the bed, too!
Annuities are a lousy idea unless you have already retired, or plan to in two or three years. Even then they're a fairly foolhardy place to put money.
2007-05-26 13:14:20 · answer #3 · answered by Anonymous · 0⤊ 1⤋
You may benefit by reading the book I have written and you can find out more about it by sending me a response.
Annuities do offer lifetime income and that is how they differ from bank accounts and other forms of investments. The payout can start at any age, but would be larger as you grow older.
I could go on and on, but if you have any questions, you can let me know.
2007-05-26 11:36:27 · answer #4 · answered by luckyzimmy 2 · 0⤊ 1⤋
Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.
http://www.investingtutorial.info/
wish it will help you.
Good Luck , Best Wishes!
2007-05-26 20:18:19 · answer #5 · answered by Anonymous · 0⤊ 0⤋
here is the answer...you give me the 25000.00 and then i will pay you say $200.00 amonth for 15 years. i will then keep the principal amount and when you die, i will keep all the money. that is an annuity.
2007-05-26 12:21:25 · answer #6 · answered by Nebraska debtbuster 1 · 0⤊ 1⤋