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ANNUITIES
There are 2 categories of annuities and they are in different
industries.
Variable annuities
Fixed/Indexed annuities
Variable annuities-
Variable annuities are investments and are regulated by the NASD
and SEC. You can lose money in variable annuities (regardless of
what your stockbroker says). There are benefits to Variable
Annuities mainly the death benefit.
Fixed/Indexed Annuities-
Fixed/Indexed Annuities are Insurance contracts and are
regulated by the Dept of Insurance, both are usually tax
deferred. Indexed Annuities reference an Index and have the
possibility of gaining more than a fixed annuity. The
Surrender penalties can be very severe on fixed/indexed
annuities. Because fixed/Indexed annuities are insurance
contracts you can very decidedly chose whom to leave the death
benefit to.
Both Vehicles have their purpose and can be powerful in
building a retirement portfolio.
Used incorrectly can hurt you.
When is the last time you had a 2nd opinion on your annuities?
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