Why financial planners bash fixed and indexed annuities?
I understand the philosophy of avoiding variable annuities usually time due to high costs, but what is the agreement with fixed and indexed annuities? Anyone who has had a fixed annuity over the last decade is mountains ahead of someone who had mutual funds. There is no charge outside the transfer period, and they can also be set up Roth IRA. If the sentence is handed people in an investment horizon, why not use financial planners These products most often? Everything I watch these searches are very safe investments, the potential market upside down (indexed I mean), zero taxes, deferred taxes and grow. Everyone I spoke to, who owns a fixed annuity is smiling right now. If please explain
1. Annuities are not the worst. They are just not for everyone. Variable Annuities: What You Should Know (SEC) in particular Read gray area of SEC "Attention!" http://www.sec.gov/investor/pubs/varannty.htm 2. Annuities are best suited for those tax brackets, high income and a need and a lack of tax deferral on investment that exceed their IRA, 401 (k) and other plan investments qualified. 3. Investment decline is 20/20. No matter what we should have done yesterday or 10 years ago if they did not make such investments. 4. It is generally inadvisable (number of compliance risk) to put an investment of deferred tax of a tax or tax exempt deferred account. IRS issues a Compliance Statement http://www.irs.gov/pub/irs-tege/epcrs_overview.pdf 5. Annuities annual contract fee, plus annual expenditures that are considered very high, generally higher than mutual funds. Pension costs and expenses http://www.fool.com/retirement/annuities/annuities02.htm 6. Annuities are not guaranteed. They are backed by the full faith and credit of the issuing insurance company. There was a lot of risks in the insurance sector on last year. (AIG, AXA, AZ, HIG, ING, MET, for example). Read Disclaimer footer. Find all insurance products investments. "- Not a bank or credit union deposit or obligation. – Not FDIC or NCUA-insured. – Not insured by a federal government agency. – It is not guaranteed by a bank or credit union. – May go down in value (variable annuity). "http://www.massmutual.com/productssolutions/individualsfamilies/ producttype / Annuities 7. Long term (15-30 + years) fixed annuities tend to underperform the market. The single rate may get now on a fixed annuity will be weak. If you purchased a fixed annuity for 10 years to pass the top of the market (. Com boom), you could have locked in contracts of 6-8%. At the time, the stock market was climbing from 20% in 1999. Http: / / www.fool.com/ddow/data/f4performancehistory.htm <05/21/2009>
CNBC Indexed Annuity – Callers Question
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