Retirees Should Run Away From These So-Called ‘Investments’
August 23, 2024 by Austin Smith
Lee and Doug discuss the pros and cons of annuities, particularly as a financial product targeted at retirees. They note that while annuities offer a degree of safety, being insurance products with state and corporate guarantees, they often come with high fees and commissions, making them more beneficial for the broker than the investor. They also highlight the lack of liquidity as a major drawback, as annuities can impose significant penalties for early withdrawal. Instead of investing in annuities, they recommend looking into low-cost mutual funds, index funds, or conservative treasury funds through reputable firms like Fidelity (NYSE: FNF) or Vanguard (NYSE ARCA: VTI). Their overall conclusion is that annuities are generally not a good investment option and should be avoided.
Click HERE to read the full story via 24/7 Wall
Wink’s Moore on the Market: File this under “Top Examples of Bad Annuity Information Being Perpetuated.”
Remember our video from yesterday, with the two gents getting it all wrong about annuities?
Well today, Austin Smith at 24/7 Wall St. is opining on their spiel.
– Most annuities don’t have “fees.”
– A combination of mutual funds and treasury funds will not get the purchaser a GUARANTEED INCOME FOR LIFE. Only an annuity can do that.
– Just because an annuity pays a commission to the insurance agent, doesn’t mean that the agent isn’t acting in the clients’ best interests.
In closing, only annuities can provide an income the purchaser cannot outlive.
Be careful to whom you trust for information on these products! -sjm
