Q: What are annuities? Good or bad? We are 65 and retired and our money is in an IRA not invested.
A: Annuities are extremely high commissioned insurance products. At the end of the day, most annuities typically cost between 3 and 4% per year. They serve a purpose and are not all bad but they are often oversold to people who don’t really need them. Since your money is inside of an IRA you don’t get any tax deferred benefit from owning an annuity. Most annuities are sold to provide an income stream but when you look at the income it provides most of the time that income could be produced without buying the annuity. If you have a specific annuity that you are looking into and need some advice feel free to contact Capital Investment Advisors for a free consultation with one of our advisors.