More Straight Talk About Annuities

More Straight Talk About Annuities

The biggest problem facing many of us in today's world of better health, longer life, and affluence is how to maintain our life style. It would be nice to live to 100, be in good health, and never run out of money. Your financial adviser told you to put all your money in annuities. OOPS! Your ship just sank while your adviser bought a bigger yacht. What's wrong here??
Many advisers will tell you to put your money in annuities, so you hand over most of your savings and then over the course of many years its doled back out to you dollar for dollar. But in actuality the dollars doled back out to you are worth less every year; in 12 years time a dollar could be worth a mere $0.25, if the company is even still around to pay it. Fees and commissions can approach 15%, and that's just the first year. Thankfully there are better ways to achieve your goals. I recommend investing your money in ways that do not put it at risk: let the insurance companies put their money at risk for you. Follow the examples of these large successful insurance companies, DIVERSIFY.
The first thing is to make sure you have adequate insurance for you and your spouse. Then investigate a single deposit insurance policy, something to leave your grandchildren. A $100k investment will yield $350k tax free, a 300% return investment as a down payment on your legacy.
Sure, put some money (5%, 10% at the most) in short term, fixed rate annuities. But with a little guidance you will do much better than annuities alone. You will be able to grow your money!
Now, spend some money, live a little and come back next week for further advice!