Originally posted here:
“Annuities are not bought, they’re sold.”
Stan “The Annuity Man” Haithcock knows all about annuities and he explains why there is so much negativity around this financial product.
Variable, fixed, immediate, indexed: It can all be confusing to an investor who doesn’t understand the industry jargon. Have you ever considered that maybe it is not an accident that annuities are confusing?
“If you are looking for market returns, you should never ever ever buy any type of annuity. If you are looking for income or principle preservation, or maybe some long term care issues, then an annuity may fit.”
These are the two most important question you need to ask before you buy an annuity:
1. What do you want the money to contractually do?
2. When do you want those contractual guarantees to start?