Annuities # 2
March 16, 2020
I’m Miriam Neff-with STARTING OVER FINANCIALLY, and I’m Valerie Neff Hogan, and we’re here to talk about money
M Annuities are an investment tool where you pay someone else to cover a risk you do not wish to take. Typically you will pay that company a higher premium that what you would earn if you parked that money in an S & P 500 Fund, which rewards on average a 7% return per year.
V Note that you assume the risk with stocks. Some are not comfortable with that. They would rather give a lump investment to an insurance company with a guaranteed lifetime income, even lower than it would be other wise, to not shoulder risk themselves.
M Widows who receive life insurance money are targets for those selling annuities. Bring a friend to the discussion. Talk to a financial planner, perhaps more than one. Say, I’ll think about it and get back to you. You have other good options.