1. Sunday, December 5, 2010 - 4:41 PM
The only annuity that I have considered was an immediate fixed-rate annuity with an inflation rider offered from Vanguard. Other than that, some of the immediate fixed-rate annuities offered by non-profits and some charitable institutions are not bad as one gets into their twilight years. If one doesn't want to leave all their funds to their heirs, or specific charities, then annuities can have a definite place in one's portfolio to generate steady income. Stay away from variable annuities, besides the obvious stock market risk, they carry heavy expenses with them.
25 posts since
Oct 11, 2010
Rep Points: 73
2. Sunday, December 5, 2010 - 9:22 PM
We have a very small annuity. We have been married 50 years and the John Hancock salesman sold us a small life insurance policy the first month we were married. It was not term insurance and had a cash value. Instead of the small interest rate it paid on the cash we did put that into an annuity. It has grown quite a bit and it is in conservative investments and part of it is in a CD. Both of our pensions are in an annuity from our place of employment. I would never take a cash out. Almost everyone I know that did take a cash out are now broke or nearly broke. We are still able to save and actually live on only part of our SS, save our pensions, haven't touched our savings and wished we did not have to take out of our 401K.
912 posts since
Jan 16, 2010
Rep Points: 2,655