When deciding about investing in annuities you will read and hear some negativity. Some financial adviser steer their clients away from annuities. There are several reasons for this but lets explore a few. Either because they don’t offer annuities or they don’t believe in the investment model, sometimes annuities get a bad rap.
Annuities offer long term tax sheltered growth which can provide significant growth if regular deposits are made and withdrawals wait until your retirement years. Now that doesn’t sound bad does it? The problem is most people cant wait or are unwilling to commit to the regular investments. Retirement income should not be considered a liquid savings account that is used for regular expenses. If you cannot make those investments with the idea that you wont prematurely withdraw them, put that money in a money market account.
Buying annuities is not like buying stocks. Many people are lured into the easy money the stock market promises only to have their hopes dashed by a bad judgment or decision, based in emotion. Most people don’t take the time to research stocks properly and end up on the wrong side of the balance sheet. Don’t fall for the lure of easy money, because its not easy. Still brokers will tease, prod and suggest the individual stock issues long before offering the security of annuities.
Thinking long term is the key to making investments, You can learn how to buy annuities, you can learn how to buy stocks, you can learn how to invest in real estate. All these investments could potentially provide a nice return. We suggest you weigh all the risks and discover for yourself if annuities make a sound investment for you and your family. Understanding investing in annuities aren’t the glitzy high flyers you will find in the stock market, but sleeping at night will be much easier and you will reap the benefits in your retirement years , rather than trying to figure out what went wrong with your investments.
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