Are annuities bad?

Answer by  Jonathan74 (92)

The answer depends on how old you are and what level of investment risk you are willing to take. In general, annuities are good for retirement age individuals who are seeking steady levels of income. However, annuities are not a wise investment for people who are just beginning investing and have many years until retirement.

Answer by  dpauleyii (843)

It depends on the percentage rate the annuity yields. This is a detailed question that should be asked to a financial adviser.

Answer by  tamarawilhite (17883)

Annuities are when others invest your money and pay you a set return. Their profit is based on the expected return above what they pay you, thus inferior to DIY.

Answer by  Kurt (4579)

Annuities are not bad in themselves but you need to know all the facts. An annuity is an investment that pays a fixed dollar amount every year until you die. The insurance company calculates your probable life expectancy and pays accordingly. If you die young, annuities are bad.

Answer by  flamiss22 (5081)

Annuities are only risky if you get into one that is too agressive. If you stick with the conventional one with a safe return you should do fine.

Answer by  technogeek (6640)

If you are ever in a situation where you owe a debt and are being sued, your annuities are protected where your other investments will not be.