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by Roger Chartier www.HowCanIRetire.net - HomePage


How To Buy Annuities

Insurance Companies
Sell Annuities

An annuity is a contract between you and them.

You can also buy annuities from some banks, brokerage firms, and directly through mutual fund companies.

Be careful of how to buy annuities because the company that you deal with might not be as financially stable.

In the past, a few have failed.

First of all learn what you can and read about the basic three types of annuities.  Know that there are fees to get in. So you should study the offers carefully and understand which kind of annuity suits you best.

How To Buy Annuities

Some insurers have failed and went out of business. Where are you then?
Look for a rock solid company with a long track record and good references.

Some advice given to me was to spread the risk with several insurance providers instead of having all my eggs in one basket.

If an insurer goes down hill, it is hoped that the government will step in and have a stable insurer take the company or have it go into receivership so that people could still get paid.

You can't blindly trust that though. So you spread the risk.

You choose the beneficiary to the annuity so that if you die before the end of the agreed pay out time they can get a death benefit.

Remember to know exactly what the administrative, and other charges and expenses, caps and fees are. If you are too eager, to just get it done, you could very well regret not paying attention to the details.

Be careful, ask questions, take your time to read everything. You and your financial planner should shop around for best rates and the best advantage for early withdrawal.

You might want to consider a 401 K retirement plan.


Disclaimer: Before you make an investment get legal or professional advice.