Thursday, February 17, 2005
This time, though, I responded differently. I called the journalist who wrote the article and asked why none of the good information about annuities was ever published. For example, this journalist wrote about the horror stories of people in variable annuities during the recent market decline.
"But what about the people who were in fixed and index annuities that not only didn't lose money, but made money in the down year?" I asked. The response was that this would not be noteworthy for news purposes.
But here's the thing. Variable annuities, fixed annuities, index annuities...you can't call them good or bad. Every investment is situational. Each annuity has it's purpose and it's place, AND ITS RISKS. But it is not fair to say that all annuities are bad...or good. Again, each one of those annuities have their positive and negative traits and it depends on the investors personal situation whether or not it is a good investment.
My advice---Do your homework when it comes to investing in annuities or anything for that matter. Don't just get swayed by one editorial without knowing the facts. Find good resources and look for good information to allow you to determine what is right or wrong for you...and seek the help of a TRUSTED professional who can guide you.
Ignorance is not Bliss