Annuity Truth: WOW! That's a pretty strong statement - as my friend Stan (the Annuity Man) Haithcock is fond of saying:
"Saying you hate all annuities is like saying you hate all restaurants - it makes no sense..."
I have a couple of questions for you to consider:
The reason I'm asking those questions is this - Social Security and your pension are examples of annuities - guaranteed "lifetime income annuities."
They pay an amount of money, every month, for the rest of your life, regardless of how long you live. That's the definition of an annuity.
An annuity can also earn tax-deferred interest, but for the purpose of answering this "Misunderstanding #1," an annuity is a financial product that pays a guaranteed amount of money, every month, for a specific period of time, up to and including the rest of your life.
So - just to be clear - you can't have it both ways - you can't "hate all annuities" while you're receiving your monthly Social Security (annuity) and perhaps a pension (annuity) payments...
Receiving guaranteed "paychecks for life" that cannot be outlived, whether it's from Social Security, a pension or a private annuity that you own, sounds like a pretty good thing from where I'm standing...
If you have questions about annuities in general, or a specific questions about a particular annuity, drop me a line, call me or fill out the "Ask Rick A Question" box - your questions will come directly to my email Inbox...
"Saying you hate all annuities is like saying you hate all restaurants - it makes no sense..."
I have a couple of questions for you to consider:
- Do you hate getting your Social Security check every month?
- If you retired from a company that offered a pension, do you hate getting your pension check every month?
The reason I'm asking those questions is this - Social Security and your pension are examples of annuities - guaranteed "lifetime income annuities."
They pay an amount of money, every month, for the rest of your life, regardless of how long you live. That's the definition of an annuity.
An annuity can also earn tax-deferred interest, but for the purpose of answering this "Misunderstanding #1," an annuity is a financial product that pays a guaranteed amount of money, every month, for a specific period of time, up to and including the rest of your life.
So - just to be clear - you can't have it both ways - you can't "hate all annuities" while you're receiving your monthly Social Security (annuity) and perhaps a pension (annuity) payments...
Receiving guaranteed "paychecks for life" that cannot be outlived, whether it's from Social Security, a pension or a private annuity that you own, sounds like a pretty good thing from where I'm standing...
If you have questions about annuities in general, or a specific questions about a particular annuity, drop me a line, call me or fill out the "Ask Rick A Question" box - your questions will come directly to my email Inbox...
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