What Is The Risk Of Annuities?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    One of the biggest advantages to Annuities is the low risk.  As long as you follow the terms of the contract and do not surrender early, you will never lose money on an Annuity. Indexed Annuities are tied to the Stock indexes and can provide some of the gains without the risk of the stock market.  Due to the guarantees in the contract and lower risk, you will not have the higher gains of riskier investments, but it is still competitive since you do not have to worry about the losses.  Never tie up all of your money into any long term investment vehicle.  Companies are now required to have suitability requirements so make sure you understand what you are purchasing and the surrender terms.
    Answered on June 18, 2013
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