Buy An Annuity — Why Not To
: Adding "bells and whistles" like death benefits or guaranteed income cost extra, which quickly eats into your principal.
While annuities can provide a "personal pension," they are often criticized for their high costs and lack of flexibility compared to other retirement vehicles. why not to buy an annuity
: Sales agents may earn commissions ranging from 1% to 10% of your total investment. : Adding "bells and whistles" like death benefits
: Annuities, especially variable ones, often carry layers of fees—including management, administrative, and "mortality and expense" charges—that can exceed 3% annually. especially variable ones
This potential conflict of interest is why experts like those at Investopedia suggest consulting a fiduciary advisor instead. Annuity Pitfalls Overview - Gainbridge