February 18, 2010
Annuities scare me because I've heard so many bad things about them. Financial planners like them because selling them means a big commission. Basically, you give an insurance company a big chunk of your nest egg and the insurance company guarantees you an annual income for life. There are several kinds of annuities. Today's Wall Street Journal deals with an immediate annuity but cautions against them right now because the payout won't likely be as high as it might be in a few years when interest rates go up. To read the article click here.
