Is is smart to cash out stocks for an annuity?

Question

On Friday my friend was convinced to cash out 1 million dollars worth of stocks and bonds and purchase an annuity by a finacial advisor she barely knows.  She is 54.  I think she made a horrible mistake while in a panic mode.

Answer 1

i agree with you, she prob. cashed out when they were at their lowest

Answer 2

the stocks will soon become worthless
she could of done better by buying gold
the annuity she bought is only as good as the  company she bought from

Answer 3

Annuities may be the best solution,  Most guarantee income at the amount invested or higher.  You could possibly lose all your money in an annuity investment account and still be guaranteed to have your money for retirement as income.  With stocks and Mutual funds the money you lose, you realize, and would have to make that up some how?  Annuities may be the solution because at her age any loss could take to much time to make up.  If she were 35 years old mutual funds would probably be the answer.