There are tax deferred and immediate annuities that are not a good value proposition, just as there are quality annuity polices offered by quality companies. Annuities in and of themselves are not bad, there just a product. To determine if annuities are right for you need to establish a financial profile that includes a risk tolerance test, discovers your effective tax bracket and your goals. There are excellent annuities with crediting method using interest rates, indices and separate sub accounts.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
What's bad about annuities? Well, it all depends on your point of view. Some will see aspects of annuities as favorable or unfavorable. There isn't a consensus.
The negatives that come to the top of my head is the surrender tables, that is if you want to exit or cash out the annuity before it has had time to work. Most annuities have long surrender tables which makes them not so liquid. The other negative might be market return. Because annuities aren't really considered risky, their returns tend not to be flashy. Little risk, little reward.
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The negatives that come to the top of my head is the surrender tables, that is if you want to exit or cash out the annuity before it has had time to work. Most annuities have long surrender tables which makes them not so liquid. The other negative might be market return. Because annuities aren't really considered risky, their returns tend not to be flashy. Little risk, little reward.