You may have heard about fixed-rate deferred annuities. Don’t think they’re a “get rich quick” investment unless, of course, you’re the one selling it to investors.
Insurance companies are raking in the fees, laughing their way to the bank. The fees range from 1%-2%, with sky-high surrender fees should you need access to your money before maturity.
Sold as a replacement for CDs that “ain’t as good as they once was,” fixed-rate deferred annuities offer yields that tend to be higher than CDs and allow taxes to be deferred. What’s the catch?
The insurance company basically takes your money to invest in a long-term manner and achieves much more in return than it pays out. Sound familiar? Heads, they win, tails you lose? Your Survival Guy’s not buying. And never, ever let taxes wag the dog.
Action Line: Don’t allow insurers to get fat on your money. Develop your own plan and compete with the big dogs on your own turf. When you’re ready to talk about how to do it, let’s talk. But only if you’re serious. Email me at ejsmith@yoursurvivalguy.com
RIP Toby Keith 7/8/61-2/5/24
