why should i convert my ira to an annuity?

Answer 1

You probably shouldn't.
Are you being advised to do this? If so, look for another adviser.

Answer 2

In general 99.9% of annuities sold in IRA plans (or conversions) are inappropriate. There are many that think this activity should be illegal.

Annuities are great for the seller of these products. They're one of the greatest for commisions and long term hidden fees.

Search out articles in Forbes Magazine, Kiplingers and other main stream media. Make sure the magazine doesn't have a vested interest in the sale of Annuities. It will shock you!

So in short... the answer to your question is: NO... Don't do it!

Answer 3

DON'T!!!!!!!!!!!!!!

With very few exceptions, annuities are very bad ideas. High fees. Your money is locked up for a long time. The person selling them to you gets a very high upfront commission. Your returns are normally guaranteed at or above a certain rate, but they are also CAPPED so if the funds they are invested in pays really well, you don't get to enjoy it all.

Let insurance companies sell you insurance, not investment vehicles.

Instead, invest your money in a well-diversified group of mutual funds with a mix that is suited to your risk tolerance and your retirement goals. DON'T make the mistake of being too conservative. Even if you are 65, your money might need to work for you for twenty years or longer. At least a small percentage should still be in stocks (small cap, mid cap, and large. Domestic, and International).

Check out pretty much any mutual fund company and you will find risk calculators and advice. Vanguard, Fidelity, etc.

Good Luck, and don't let that insurance salesperson get his fat commission check at your expense.

For more help check out the fund sites I mentioned, or Dave Ramsey's website.

There are some great books out there as well. "The Millionaire Next Door" is a good one.

Answer 4

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