Annuities: Good or Bad for your portfolio? The answer: It depends. Some may find they are definitely not suitable for their needs and objectives, others may be very comfortable with them as a small portion of their overall portfolio for their guarantees. Fixed indexed annuities, for example, participate in some of the market upside while protecting your principal on the downside on an annual basis. Many variable annuities can sometimes prove costly to the client in overall fees and charges and may not be worth it, especially held in an IRA. There are also different types used for different reasons i.e. principal protection, moderately conservative growth potential, guaranteed lifetime income, etc. Before considering one, definitely review the total overall costs, time horizon, risk, and any disadvantages they may carry to be prepared in the long run.
If you have questions regarding any annuities, would like a second opinion, or would like an income planning review, please feel free to reach out to us today!