Comments on: Annuities Or Stocks Which Should You Choose http://fisherannuity.com/understanding-annuities/annuities-or-stocks-which-should-you-choose/ Your Online Resource for Undersatnding Annuities Wed, 24 Dec 2008 18:42:58 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Paul Petillo http://fisherannuity.com/understanding-annuities/annuities-or-stocks-which-should-you-choose/comment-page-1/#comment-22 Paul Petillo Mon, 25 Aug 2008 23:35:34 +0000 http://fisherannuity.com/?p=35#comment-22 I took Professor Merton, the John and Natty McArthur University Professor at Harvard business School and a winner of the 1997 Noel Memorial Prize in Economic Sciences to task over his idea that annuities are something worth considering. They are not and the combination of stocks and annuities in the wrong (read:less experienced) hands can be the death knell for a borderline portfolio. And we know that many of them currently are. I took Professor Merton, the John and Natty McArthur University Professor at Harvard business School and a winner of the 1997 Noel Memorial Prize in Economic Sciences to task over his idea that annuities are something worth considering.

They are not and the combination of stocks and annuities in the wrong (read:less experienced) hands can be the death knell for a borderline portfolio. And we know that many of them currently are.

]]> By: Jay Peroni http://fisherannuity.com/understanding-annuities/annuities-or-stocks-which-should-you-choose/comment-page-1/#comment-21 Jay Peroni Mon, 25 Aug 2008 03:12:16 +0000 http://fisherannuity.com/?p=35#comment-21 I am not a fan of most index annuities as they rarely keep up with the indexes (cap limits growth), they often have long term surrender charges, and cap rates are controlled by the annuity company. There are many other better annuity choices (variable annuities with strong income guarantees). I agree that an annuity should be a part of a long-term income distribution plan. A combination of stocks and annuities can provide a quality mix for retirees but you have to do your homework. Jay Peroni, CFP I am not a fan of most index annuities as they rarely keep up with the indexes (cap limits growth), they often have long term surrender charges, and cap rates are controlled by the annuity company. There are many other better annuity choices (variable annuities with strong income guarantees). I agree that an annuity should be a part of a long-term income distribution plan. A combination of stocks and annuities can provide a quality mix for retirees but you have to do your homework.

Jay Peroni, CFP

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