Is An Annuity A Good Or Bad Investment?

TAMPA, Fla. - Feb. 6, 2014 - PRLog -- Compared to what?   Is an annuity a good investment if you had invested the majority of your dollars with Bernie Madoff or  Alan Stanford?   How about if you invested in Countrywide, General Motors, Lehman Brothers, Enron, WorldCom Inc., Citi Group, Fannie Mae or Freddie Mac?   Or maybe you were unlucky  enough to have  saved over and above what was insured  at banks like  Washington Mutual, IndyMac or  Colonial Bank among many other large and small banks that have recently failed.
Hindsight is 20/20 of course, but having the discipline and foresight to diversify your assets is most important in a fast changing investment landscape.    Fixed, indexed and immediate annuity policies offer safety, income, growth, protection of principal, and  an alternative to some of the more risky market based assets and ponzi schemes that have decimated many investment and retirement portfolios through the years.

So Are Annuities Bad  Investments?
It really depends on who you ask. We find ourselves in a period of industry warfare where a lot of disingenuous (and outright fictitious) information has been knowingly disseminated by those who think all of your money should be invested in stocks and bonds.

The flip side of this argument is that there are annuity agents who are promising the world with certain contracts and failing to disclose pertinent information to potential investors.   Believe it or not,  there is plenty of middle ground when it comes to investing for retirement.

Those who say that annuities are bad investments tend to lump all annuity classes together. What they fail to disclose is that there are several annuity types (with different optional riders) that are designed for different investment goals. To say that they are all terrible investments  and consumers should run (not walk) away from is extremely misleading.   At best, it’s lazy journalism; at worst it’s blatantly spreading half-truths and lies in order to push people toward risky investments in the stock market.

Misleading The Public For Personal Gain
Generally when these so-called investment pundits  are espousing what they deem to be the negative attributes to annuity investments, they have ulterior motives. Oftentimes, they are shills for the stock market community and earn their keep by waxing poetic about annuity accounts they have never taken the time to research or understand.

The Various Types Of Annuity Accounts
Generally, there are four types of annuities for consumers to choose from. The only account that exposes the invested principal to market loss is a variable annuity. The other three types (fixed, indexed and immediate) are all safe and insured accounts that will not lose value when the stock and bond markets fluctuate.

Additionally, all annuities can provide regular income in good economic times and bad.

Fixed, indexed, and immediate annuities have been purchased by investors for years to generate regular income and to protect retirement and non-retirement accounts alike. If they are such bad investments, then why are they often used in private and public pensions, structured settlements, lottery payments, and a host of other guaranteed contracts?

The fact is annuities are not bad investments. While it is true that annuity accounts (http://www.mintcofinancial.com/quotes/annuity-quote/) pay commissions, have early surrender penalties, and can be longer term in nature; there is a place for them in most investment portfolios. When used properly, they provide a much needed insurance policy against income and/or stock market loss.

In summary, when used properly annuities are valuable investments that have helped many consumers diversify their retirement accounts and reduced their  direct market exposure.
Stock market cheerleaders can moan all day about surrender penalties and/or commissions, but let’s remember that these folks are not  volunteers either.

The amount of money that it takes for them to constantly  advertise on television and elsewhere has to come from somewhere.   They seem to all be making quite a bit of money off the general public, but have the audacity to gripe about a commission payment.

The bottom line:   When used properly annuities are a very safe, stable, and insured  investment that you can count on for growth and regular income.   When diversifying out of the market, annuity accounts should be at the top of your list as an alternative asset class.

- Mintco Financial Team of Independent Advisors is an independent insurance agency specializing in annuity accounts.   We provide quotes, illustrations, and information on the leading policies from several highly rated carriers.

Call us now at 813-964-7100 or get a free quote (http://www.mintcofinancial.com/quotes/annuity-quote/)