FYInance

Posts Tagged ‘annuity’

A discussion on whether a guy should cash out of his equity index annuity now and pay the penalty or wait until he does not have to pay the penalty any more. usually penalty is high for annuities. His principal is protected so experts say that he should wait.

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Today we had planned to discuss more basic types of investments but John had a question about his variable annuities so let’s discuss annuities instead. Thank you John for bringing up annuities that might be a good investment for this economy.

Do you think investing in an annuity is a good idea right now?

Most people don’t even know what an annuity is. We asked some people at random to see if they knew what an annuity was and most of them had no clue what it was. Some people think it was something else entirely non-financial related. First of all, an annuity is a life insurance product, not just a investment like some people who actually have an annuity would think. There are many types of annuities. I was surprised to learn that there are even more types of annuities nowadays. When I invested in a variable annuity, that was cutting edge and now there are so many riders to confuse investors.

We will of course go into more details about annuities another day. But, for now, let’s do our own research on what an annuity is and whether an annuity is a good investment especially in this economy.

Where to find more information on annuities?

There are websites that explain what annuities are and whether they are good investments. Try the following websites on annuities. If you cannot find annuities on those websites, try searching for annuities. http://www.sec.gov and http://www.annuity-annuity.info. Bear in mind that if you just search the web, you will be taken to individual life insurance companies’ website. To get a general idea of what an annuity is and how to invest in an annuity, you should try unbiased sites first before you go deeper into a particular annuity by a particular life insurance company such as Vangaurd, Hartford, Sun Life, etc.