Annuities are one of the most misunderstood products in the market. You’ve probably seen or heard the ads from Ken Fisher Investments, saying “stay away from annuities”. This type of blanket statement is reckless and irresponsible. Annuities aren’t for everybody. Like any other product, some types of annuities carry risk and have significant fees. Other types, fixed and indexed, have no risk and little or no fees. They are a place to put “safe money”, and at their best can provide a guaranteed income for as long as you live.

In this very volatile market, short term annuities allow you to take cash or money from expiring CD’s and earn a better return with no downside risk. For those with 7 or more years until retirement, fixed index annuities provide an income stream that you can’t outlive. There is no risk to your principal, and during the initial term you can access a percentage of your money without penalty. But these types of annuities are designed  not to be touched for at least 7-10 years, which is what allows them to create lifetime income!

Don’t be afraid of the unknown. There are dozens of carriers and hundreds of annuity products. Let us help you decide if an annuity makes sense for you. It may or may not. But in these turbulent times, the safety of your money should be an important consideration in your investment decision process.