Are annuities a good retirement investment?

My spouse and I are 70 and 67 years old and retired. We have a fixed and variable annuity. Is this a good investment for monthly income? We sometimes need extra income for home maintenance.

Retirement, Investing, Annuities, Real Estate
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April 2018

With your limited information this is a difficult question to answer.  After being in the financial services business for over 25 years and knowing what I know now, I personally am no longer a fan of annuities because of all the stipulations they have and high expenses.   Most annuities seem to benefit the insurance company and sales representative more than they do the person buying them creating a conflict of interest. But, since you are already in annuities and could have a large surrender penalty if you wanted to get out of them, without knowing if they have a guaranteed income benefit,  they may or may not be a good investment option for monthly income. Bottom line is: your question is one that can only be answered correctly by a financial advisor that better understands your entire financial picture. My suggestion is you find a fee only based advisor that does not sell annuities as one of their only options for retirement income. They are out there but the temptation is so great for the high commissions annuities offer, you have to seek out a fee based advisor and then ask them how they feel about annuities.    
 

This answer is intended for informational purposes only and is not intended to provide specific tax, legal, or investment advice. I invite you to schedule a meeting with a me for more information regarding your specific situation.

April 2018
April 2018
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April 2018