Ten Things Seniors Need to Know About Purchasing Annuities But Don’t!

senior couple

By Bob Hock

If you walk into a meeting with any financial adviser, there’s a very good chance that the adviser will present an annuity for your nest egg. Annuities have turned into the Mr. Fix-It for all age groups. An annuity is a tax-deferred savings vehicle bought mostly by seniors, and is designed to supplement income needs through withdrawals. Annuities have a spot in many portfolios, but are they being overly recommended by advisers?

Buy an annuity when you’re young…or when you’re old!

No matter what your age, a fixed annuity makes sense for your nest egg. It makes the most sense when you can take advantage of the product’s tax-deferral benefit. It also s


[Continue Reading at SavingAdvice.com]

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4 Responses to Ten Things Seniors Need to Know About Purchasing Annuities But Don’t!

  1. carolyn says:

    What is an SPIA?

  2. Nate says:

    Single Premium Immediate Annuities. They are annuities purchased with a lump sum of money (instead of over time) and usually begin payout immediately.

  3. Lauren says:

    Thanks for reading, everyone! If you or someone you love could benefit from free retirement advice and information about the complex topic of annuities, please come visit us at our blog, like us on Facebook and follow us on Twitter @AnnuityEarl. Best wishes!

    And a special thank you for giving us this platform. We’re at a time in history where seniors need advocacy more than ever, and your support is invaluable.

  4. “The annuity adviser you choose may be your most important decision” was probably your most important statement.

    Here are some good questions to ask when looking for an advisor:

    • Is the person you are considering working with independent? Or is he or she tied to selling specific products?
    • How long have they been in the business? How many people have they helped?
    • Will they provide client references? Real people you can talk to?
    • Do they have a clear, concise message that’s educational instead of sales-y?
    • Does their educational material make sense?
    • Are you comfortable with them? Can they answer all your questions?

    Answer these questions to your liking, and you’ve probably found a good advisor.

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