2007-09-24 12:14:11 · 4 answers · asked by dustyn c 2 in Business & Finance ➔ Investing
Apples and oranges. You can have Mutual Funds inside an aannuity. These annuities (called "variable annuities) are loved by sales people. They have the highest commissions than almost any other product. Their advantages are for only a very small minority of the public.
A 3% annuity (fixed) is not advantageous for most people and the tax deferral doesn't do much.
Mutual Funds come in all types & reading a book or two will give you a great advantage over your lifetime. Take the time to understand the different type of Mutual Funds. Have an "asset allocation" that meets your needs.
Good luck.
2007-09-24 12:38:20 · answer #1 · answered by Common Sense 7 · 1⤊ 0⤋
Annuities are not very fungible. Generally there are large surrender charges. I have never considered buying one.
I can only imagine doing so if I was caring for a developmentally disabled child - providing a steady income to help provide for his needs in the case of my death. I am uncertain of the tax implications.
I like mutual funds. I can buy one that matches my risk tolerance, the fees are a lot lower. Moreover, I can very easily move from one account to another. Moreover, it's pretty easy to get a better rate of return.
2007-09-24 12:24:33 · answer #2 · answered by John T 6 · 1⤊ 0⤋
Annuities are a product designed primarily to make money for the person selling them, not for the customer buying them!
A 3-percent return is completely worthless, and in "real" terms is actually a loss.
2007-09-24 13:06:19 · answer #3 · answered by Anonymous · 1⤊ 0⤋
1) Yes.
2) Yes.
2007-09-24 12:27:25 · answer #4 · answered by Anonymous · 1⤊ 2⤋