Originally Posted by Vuflanovsky
The overriding factor in this is probably understanding what you're investing in and I don't know if the personal friend advisor is a double edge sword or not in this situation...but annuities are inherently ( and purposely ) complicated beyond not being appropriate for the majority of people vs. other options....especially at age 34. For example, if any annuity you're considering contains a surrender charge where you can't can't get out of it for 7-8 years without an outrageous percentage of it as a penalty, then I wouldn't invest in it to begin with, etc. Does the idea cross your friend's mind..." It's only 18K, he won't hate me for that"...LOL
I'd consider this a suggestion thread with the crux of it being that whatever you get into, you fully understand its drawbacks, restrictions, pros/cons, and how those impact your situation if you change your mind. With annuities, that can be very difficult when these folks are commission-based versus being a fee-based advisor where at least a fiduciary duty can mean something. ...not to mention the typical performance difference versus what a couple in their 30s could do on their own over 30 plus years. IMO, any "guarantees" associated with annuities are greatly discounted in that long a time line possibly to the point of irrelevance.
Very well said!
The overriding factor in this is probably understanding what you're investing in and I don't know if the personal friend advisor is a double edge sword or not in this situation...but annuities are inherently ( and purposely ) complicated beyond not being appropriate for the majority of people vs. other options....especially at age 34. For example, if any annuity you're considering contains a surrender charge where you can't can't get out of it for 7-8 years without an outrageous percentage of it as a penalty, then I wouldn't invest in it to begin with, etc. Does the idea cross your friend's mind..." It's only 18K, he won't hate me for that"...LOL
I'd consider this a suggestion thread with the crux of it being that whatever you get into, you fully understand its drawbacks, restrictions, pros/cons, and how those impact your situation if you change your mind. With annuities, that can be very difficult when these folks are commission-based versus being a fee-based advisor where at least a fiduciary duty can mean something. ...not to mention the typical performance difference versus what a couple in their 30s could do on their own over 30 plus years. IMO, any "guarantees" associated with annuities are greatly discounted in that long a time line possibly to the point of irrelevance.
Very well said!