You may have heard the saying, “It’s not your father’s annuity.” That’s because annuity products have evolved significantly throughout the past decade. This has also contributed to an environment full of mixed messages regarding the pros and cons of annuities.
We recently wrote a blog on ‘Why People Hate Annuities’ but the truth is, there are plenty of reasons why to love them too. Joint policies for married couples, death benefits and guaranteed income for the rest of your retirement are just a few. Read the full article on KTAR News and call us to see if Annuities make a good match for your portfolio.
Annuities can be some of the most polarizing products in the investment world. As retirement investments, some in the industry swear by them, while some say they are a complicated, overly expensive way to invest. Let’s take a look at five popular reasons why people hate these products, and also some reasons people love them.
Hard to Understand
The annuity would probably never top a list of the most easy-to-understand investment products. For starters, there are several different types of annuity products: fixed, indexed, and variable. There is a disparate set of guarantees and risks for each type, which must be fully understood in order to make an informed decision. The work isn’t done once the product type is selected, either; indexed annuity purchase payments must be allocated among a choice of several interest crediting strategies, and variable products have a menu of mutual fund-like subaccounts to choose from. Selecting an annuity and optimizing the endless options on your own can be a complex task.