Annuity Buyers
Attention Annuity Buyers!
Before purchasing an annuity, you’ll need to do your due diligence. Annuities have been getting a bad wrap – mostly due to bad communication. When I first started looking into annuities, there were many agents trying to push them as high return CD’s.
What they didn’t tell the annuity buyers was all of the information regarding front-end loading fees, maintenance fees, and surrender charges.
Another thing that buyers of annuities should know is that not all annuities are the same. Variable and fixed are totally different. Within the fix category, there’s also something called a fixed indexed annuity. With that, you have the potential to earn a great return based on several options. With an indexed annuity, you can get positive earnings when the market goes up. When it goes the opposite direction, you don’t lose any money when the market drops.
Last but not least, you should check out the credit rating of the company. You’ll want to make sure that the company is solid. I prefer b rating and above. Standard and Poors is one company that rates a wide-range of annuity/insurance companies.
That’s all for my tips for annuity buyers. Remember, it’s up to you to make the right decision. Don’t depend on anybody else when it comes to saving “your money” for “your retirement”. As an annuity buyer, you are responsible for your own finances.