Tips for choosing the right annuity plan
April 20, 2021 by Ronald Lipman
Q: I would like your thoughts about annuities. My husband is looking into putting his money from a savings account into an annuity. I have heard from friends that annuities are not a good investment. I will tell you he lost our retirement funds in the 2008 stock market crash. He is 80 years old and still works full time. I am 76 years old, and I work part-time.
A: First, you say that your husband is thinking of putting “his” money into an annuity. If the two of you have been married for decades, then half of his money is actually your money, and you should have an equal say in the investments he makes. Annuities come in many different forms, and you need to be sure that the one you are buying is appropriate for an 80-year-old man with a 76-year-old wife.
Wink’s Note: Am I being too sensitive here?
1. “[Annuity] Salesmen can be heavily influenced by these commissions?”
I’m (relatively) young, I’ve got pink hair, a tattooed body, a bunch of piercings, & I am a woman. I also happened to be a licensed life insurance/annuity saleswoman.
2. When you suggest that annuity salespeople “CAN BE heavily influenced” by commissions- it is like suggesting that my 7-year old “CAN BE heavily influenced” by piles of homework, & be compelled to give up his iPad.
Could it happen? Sure. But, do you know a kid that age?
3. The suggestion to work with a CFP gave me pause…does anyone know the % of Certified Financial Planners that use annuities as a tool in their toolbox, when appropriate?
Sincerely interested, as I receive the impression from a vast number of CFPs that they are anti-annuity.I have some GREAT friends that are CFPs too, & appreciate t he benefits annuities can offer their clients when appropriate.
P.S. People put $ in annuities to protect it from lawsuits?! – sjm.