Originally Posted by
cranky old dude
So, has anyone here ever had any experience with these guaranteed annuity plans? Supposedly you invest an originating amount and collect six percent interest on it and regardless of what happens to the economy the original amount is waiting for you when you turn 85 years old. Six percent of the original amount is the minimum I'ld collect each year, guaranteed. Sounds too good to be true.
The payment guarantee is only as good as the future stability of the financial institution that is issuing the annuity.
Given the turmoil in the financial world these days, personally I'd be uncomfortable putting a major portion of my retirement funds into a single financial instrument. A recent article I read re:annuity suggested it's worth considering for *part* of your money but that other portions should be put elsewhere.
In my opinion, particularly now, it's worthwhile to be diversified both in the types of investments you have and in the institutions where your money is invested.