Friday, March 31, 2006

Do You Really Want an Annuity?

So, you are thinking about an annuity but do you really want an annuity? Well, let me start out by saying that annuities aren't for everyone. I get the craziest phone calls where people say, 'Well Tony, I need access to my money and want liquidity. Should I buy an annuity?' The answer is obvious.

Annuities have their drawbacks and you have to think about those when you are considering your investment choices. Yes, you had better make sure that these drawbacks are not what you DON'T want.

Now, on the contrary, if you can live without a whole bunch of liquidity, annuities can offer some pretty interesting options. But remember, insurance companies reward you for time on your money and for the ability to use your money and not to have to give it back. So if you are willing to give up time and ontrol on your money, they may be able to reward you for this.

My point is, annuities aren't for everyone. You have to make sure you can accept what they can't offer you. If you can, then you will be in good shape.

Ignorance Is NOT BLISS!

Tony B.