How Safe Are Annuities To Invest In?

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    David RacichPRO
    Fountain Hills, Arizona
    An annuity contract is only as good as the insurance company who issued the policy. So ratings and financial strength are important. There are three types of crediting methods for tax deferred annuities:fixed interest rates, indices and separate subaccounts. Separate subaccounts are used in variable annuities and can lose money.Product suitability and selection is determined by your financial profile, risk tolerance and money goals. Once you determine these critical components as an annuity purchaser, you can select the best annuity suited for you.
    Answered on July 14, 2013
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    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There are a variety of annuities.  Fixed annuities offer guaranteed interest for the life of the contract.  They offer a lifetime of monthly payments, regardless of how old you become.  It is pretty difficult to get anything that will do that.  Other annuities can be a bit less guaranteed in exchange for an opportunity to participate in market based products; however many of these have spectacular guarantees as well.
    Answered on August 29, 2014
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