Anyone who wants to use their money to accumulate at a relatively safe return that protects principal and/or anyone who wants to generate predictable and reliable income with the money that they have should consider buying an annuity.
These are two fact patterns that traditionally work best for annuities.
That is a great question! Like all investments, there are good and bad things about annuities that make them a great investment for some people, and not so great for others. The ideal purchaser of an annuity is someone who has a steady cash flow; significant reserve assets to cover in emergencies; can afford to set aside a large sum of money for a length of time; and is looking for structured, taxable income flow for many years. If setting a large part of your savings into limbo for several years can be an issue for you, then an annuity may not be the best investment vehicle for you. Please discuss your specifics with your advisor, to see if it would be right for you, or drop me a line, I'd be happy to walk you through the details. I hope that helps, thanks for asking!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An annuity provides one benefit that is unique, guaranteed lifetime income. Since many people fear that they will outlive their resources, an annuity is a very efficient way to handle this concern. An annuity is an insurance contract and has beneficiary provisions which allow proceeds to be distributed without probate. For many people this is a concern. Because they are insurance products annuities often contained riders that provide living benefits that some will consider very important.
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These are two fact patterns that traditionally work best for annuities.