Are Annuities Good Investments? Weighing the Pros and Cons
January 31, 2023 by Nate Miller
Some people may love annuities.
Some people may loathe them.
Of course, in many instances, a person’s views on annuities often come down to not just personal preferences, but also to whether they make money from them. A financial professional who sells annuities but has nothing else to offer prospective clients will likely point you in the direction of annuities. Likewise, someone who is not licensed to sell annuities will steer you away from them, quick to jump on any real or perceived faults in this investment option.
Click HERE to read the full story via Kiplinger
Wink’s Note: Nate Miller, of Miller Retirement Group, said a few things in this article, which resonated with me. In particular-
“The speed with which you can turn an investment into cash is called liquidity, and one criticism of annuities is that they aren’t very liquid. That is because they are designed to be long-term investments for retirement income.”
Great point!
“But here’s my thought on the liquidity issue: If you have an annuity with a lifetime benefit, why would you want to cash it in? I can’t think of a reason.”
Neither can I, Nate.
(I think that naysayers would comment that unforeseen circumstances arise. Still annuities allow for annual penalty-free withdrawals. Plus, no one should be putting ALL of their eggs in the annuity basket.)
Interestingly, this article has a link in it, where the reader can “look for a financial professional.” I have to believe that this is a link that Kiplinger put into the article, and not Nate.
The article that the link directs you to, indicates that “being a CFP and a fiduciary – should be non-negotiable when choosing an adviser.” I have to disagree, as upwards of 99% of those that sell annuities are not fiduciaries.
Does the latter article cater to the advertisers (or lead purchasers?) of the magazine? Interesting question… – sjm
