Annuities – Good? Bad?

Annuities – Good? Bad?

We all want to know that our money is safe, accruing interest, and that we can have access to it whenever we want it. Since investing in the stock market can be volatile, people have started investing their money in annuities.

In Florida, companies took in some $20 billion in annuity premiums in 2009. Only California and New York took in more. Nationwide, annuity sales rose 17% overall in the first quarter of 2011 to $58.1 billion.

An Annuity is an investment designed to pay investors a steady income in retirement or under other circumstances. It is a good way for people to ensure that their money is safe, and returns are guaranteed.

There are several types of annuities that you can invest in, depending on the degree and level of risk you are willing to endure. Fixed annuities are considered the most conservative, and the safest, of the annuity choices. They offer investors a fixed amount of payout either immediately upon investment, or as a tax-deferred investment payable in retirement.Variable annuities offer varying returns derived from investments in stocks and bonds.

Older people tend to be the primary annuity investors. With that, although it is unfortunate, there are plenty of aggressive salespeople that try to take advantage of the elderly. By utilizing fine print and drawing up 50 page documents or even longer, many sellers of annuities turn these annuity contracts into nightmares of fine-print conditions, hidden fees, and flawed or made up guarantees on monetary return. Like in any sales industry, there are always people who are willing to break moral codes and standard ethical values in order to make a buck. Do not let it be at your expense.

Although the volatility of the stock market has lured older investors into annuities, they need to exhibit caution that they are not being taken advantage of. We encourage all investors to consult with a trusted financial adviser before investing in an annuity in order to ask questions, and find out who is guaranteeing what, and most importantly, how long you must have your money tied up without incurring a penalty to access it.

If you think that you have been taken advantage of, can’t access your money, or are being told things about your contract that you don’t think you ever agreed to, we may be able to help.

Call us for a free consultation at 561-266-9191 or email us at

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