By: Clinton Miller, CFP ®
You probably don’t need an annuity.
Annuities are like housecats. They stir up a lot of controversy. Love them or hate them, they are complicated creatures, and they don’t always play nice with others. Your friend may love hers, but that doesn’t mean you should bring one home too.
Some advisors loudly despise annuities and want you to hate them too. Others haven’t met a client who doesn’t need an annuity, in any situation.
Annuities aren’t good or bad- they’re just one of many ways to plan your finances. In the context of a comprehensive financial plan, an annuity may be a hand-in-glove solution. But often they are sold, not bought. And all too often, they end up causing more headache than they’re worth.
Sometimes, annuities don’t play nice with your money. They can be costly, with fees difficult to decipher. Annuities often lock up your money for years, sometimes permanently. And very often, they aren’t necessary. You can create dependable retirement income without using an annuity.
Here are the top 3 annuity problems we see when we begin working with new clients.
Before you buy an annuity, make sure you aren’t making these mistakes. You should be able to see how the product fits in with your money picture. You should feel comfortable with the trade-offs you’re making, the liquidity you will give up, and the fees you will pay. If you don’t feel confident, don’t buy it.
It is possible to meet your financial goals, have a consistent income stream, and feel connected to your money without purchasing an annuity.
Contact Pleasant Wealth today to schedule your first free, low-tension meeting.