The value of annuities
January 5, 2011 by Matthew Taylor
Published: Wednesday, January 05, 2011, 1:01 AM
I disagree strongly with Tim Decker’s column: “Consumers beware when it comes to annuities” in Your Money (Dec. 19). Annuities are highly regulated financial products.
All annuity contracts must be approved by the Pennsylvania Insurance Commission, with specific provisions and contractual guarantees.
A fixed annuity provides a guaranteed interest rate for a specific number of years to protect you from market fluctuations.
Fixed annuities generally offer fixed interest rate periods from one to 10 years – like a CD but tax deferred.
Suze Orman wrote in her book, “The Road to Wealth,” about the benefits of indexed annuities. When asked “How do I know if an indexed annuity is right for me?” Suze replied, “If you do not want to take any risks but still want to play the stock market, a good indexed annuity may be right for you.” Annuities can conservatively accumulate assets to help cover fixed living expenses in retirement and have successfully protected the life savings of many Americans.