Annuities are one of the biggest financial product scams today. There are thousands of financial advisors telling their clients that annuities are a good investment. But what most people don’t know is that their advisors are getting huge paydays every time they sell an annuity.
Most advisors are paid on a commission basis. They may be earning as much as 10% of the amount you invest in an annuity. That’s a pretty good incentive to sell you a financial product whether you need it or not.
The truth is, you can achieve nearly everything that an annuity does without all the expenses that the insurance company charges.
You will get a better return investing your money on your own. You don’t have to worry if the insurance company will be around in 20 years to make good on the contract.
The only benefit that I can see to an annuity are the ones that provide income for life. It’s difficult to achieve the same thing with other financial vehicles. However, you will pay very high fees for this kind of annuity.
Beware anytime someone tries to sell you an annuity. They may not have your best interests at heart.