Also because of fees, you will not get the total growth in the index, you will only receive a portion. In addition, because of the commission, you will be starting at a lower balance for the growth to act on.
One additional concern is how inflation or decline in purchasing power is addressed by the annuity. Most annuities do not unless you purchase an inflation rider.
Also annuities do not have the capability to deal with large medical expenses which have the highest probability of occurring near the late stages of your life.
Also the insurance agent does not have a fiduciary duty (acting solely in your best interests), but your financial adviser as long as he is not selling you a product, is governed by fiduciary rules.
If you still feel that you need an annuity, you may want to contact Vanguard. Their annuities will at least have the lowest fees and commissions.
Annuities tend to be high expense, low returning vehicles.
Why did you quit contributing to your 401k?? Are you in retirement?? How much will this 100k annuity return monthly and/or yearly??
Is this your only retirement money??
Hard to believe that you are going to believe your insurance agent instead of your financial advisor.
My insurance agent suggest I rollover $100k of my retirement money to an index annuity, since I stopped contributing funds to my 401k. My financial advisor does not recommend it because he said I will paying for the insurance agent's commission as well as high fees.
Everyone else keeps telling me the same thing. I still don't understand the fees and the commission part. What does fees and the commission have to do with the guaranteed returns every year I am getting for retirement? My insurance agent ran the numbers and they seem reasonable to me. I don't want to run out of money after I retire. I want a peace of mind.
What's the worst that can happen if I buy an annuity?
