Please help me to choose my annuity!?

Question

I am 44 years old. I am thinking to invest $200.000 for my retirement since I will have nothing from SS. I have two options from two advisers for my annuities. I have no ideas which one is right for me.
One is Variable annuity Perspective II from Jackson National with 8% return, guaranteed life income and Death benefit. The adviser said I have a good chance with more then 20 years( till I am 65y) time to let the money grow, but I am worry about my principal. Another one is fixed annuity from Allianz, the adviser said I can have my principal safe. I have no idea which one for me is right. I just want to have my life settled to the end and hopefully to have something left for my son after I passed. Please help with your advice. Also how much I can expect to pay the Tax when I start to withdrawal the money after I am 65 years old? Thank you! Please be honest and serious help!

Answer 1

Variable annuities are terrible investments. First, the salesperson gets a 3 to 8% commission from the sale. Annuitizing for a guaranteed life payment is usually a bad deal.

Get yourself an index-based mutual fund and you avoid the hefty commissions.

Answer 2

Annuities are great for the sellers... they earn more commission for the salesrep then just about any other financial product.  Variable annuities are the worst of the lot.  A regular annuity is not great... but it's not a total rip off like a variable annuity.

Tax differed..... is the biggest part of the rip off.   A regular Mutual Fund (No load, low fee) can be more tax effective than an annuity (not all, but many). The internal fees on these products never end and are usually well hidden.

Learn a little about investing. Check out the "Dummy" series on investing and Mutual Funds.  The advisers would like you to think this stuff is very complicated...... it's usually the rip off products that are very complicated......  confusion helps build profit.

Selling annuities (especially for your entire portfolio) is unconscionable. These representatives are either stupid or don't gave a hoot about you or your future.