Where can you buy annuity?
Where can you buy annuity?
Fidelity is one place https://www.fidelity.com/annuities/overview?imm_pid=70000000âŚ
Look up âannuity calculatorâ in your favorite search engine, and youâll be tagged as a lead generation prospect for a lot of annuity sellers.
AJ
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Perhaps a more important question, what are you trying to accomplish by purchasing an annuity? You can buy one at the vast majority of financial institutions but the lack of specificity of your question makes me wonder if you have a good grasp of what you even want/need.
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Fidelity, Vanguard, and maybe T Rowe Price are well known for their low cost annuities. Once you know what you want shop around for best terms.
We had an Annuities discussion board now closed where many aspects are discussed or linked to other postings.
Most insurance agencies and financial agencies offer annuities. They are over sold and often expensive but can fit into some financial plans.
Those with fixed single premium immediate annuities are paying the price right now, as they and other forms of fixed income such as private pensions, are experiencing high single digit purchasing power losses and may well continue to do so over the next 2 years or so.
The broad stock market will rise and fall over the years ahead, but purchasing power will only decline.
BruceM
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https://www.annuity.org/annuities/providers/
âthe $2.7 trillion annuity industry.â
https://smartasset.com/retirement/how-to-buy-an-annuity
âWhen you purchase an annuity, youâre purchasing a promise of future income. You pay a premium to the insurance company and in return, the company agrees to make payments back to you beginning at a specified date. Immediate annuities begin making payments right away while deferred annuities may have a start date thatâs several years down the roadâ
https://www.annuity.org/annuities/buy/
âfirst evaluate your lifestyle, your needs and your risk tolerance, which is essentially your comfort with various levels of risk.â
https://www.investopedia.com/best-annuity-rates-5179335
âMost annuity providers guarantee your interest rate for a fixed term, usually three to 10 years.â
https://www.retirementliving.com/best-annuities
https://www.retirementwatch.com/10-best-annuity-providers-unâŚ
https://www.consumersadvocate.org/annuities/
Generally, you find a lot of folks who actively dislike annuities - basically they believe the
costs are high for the payouts. Somewhat a function of how people see risk - folks whose time
perspective is recent do not see as much risk with low-cost Index based mutual fund/ETFs as one
might see with individual stock portfolios or stock and bond portfolios.
Howie52
Different folks use different vehicles - what one person is comfortable with another is sleepless
even thinking about.
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And some do have contracts with inflation protection (but usually an expensive extra feature).
No I donât understand. I am learning. Just a wild thought occurred, if the rates really go up, thought of putting couple of hundred thousand in an annuity and lock in high rates. I am at least 10 years away from retirement.
Kingran,
Perhaps if rates get high enough,a better choice may be 30 year zero coupon Treasuries.No reason I can think of to pay profit to the insurance company.
Jk
No I donât understand. I am learning. Just a wild thought occurred, if the rates really go up, thought of putting couple of hundred thousand in an annuity and lock in high rates. I am at least 10 years away from retirement.
If you are just learning, then the last thing you should be asking about is where to buy one.
You might start here:
What Are The Different Type Of Annuities?
There are 13 types of Annuities.
https://www.annuityexpertadvice.com/what-are-the-different-tâŚ
Types of Annuities
https://www.annuity.org/annuities/types/
Annuities can be one of it not the most complex financial instrument available to individual, non-accredited investors. You should do A LOT of research before you ever consider purchasing one - and I state that as someone that occasionally sells annuities.
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" annuity? "
Ran across a discussion on âBogleheads.orgâ:
https://www.bogleheads.org/forum/viewtopic.php?f=10&t=37âŚ
and that linked to a Morningstar article:
https://www.morningstar.com/articles/1088012/do-you-need-an-âŚ
Which are quite interesting.
Thought of your posting when I saw them.
Howie52
You will find a lot of folks who hate insurance products - but you have to read and decide yourself.
There is no one correct path that works for everyone all the time.
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And some do have contracts with inflation protection (but usually an expensive extra feature).
Really? I havenât seen actual inflation protection (i.e. an increase in the payment amount based on an inflation index) offered by an annuity policy in a very long time. What I have seen offered is a set rate of increase, usually 3% or less, on an annual basis. Thatâs not the same as âinflation protectionâ.
AJ
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Fixed payment for the specified period once annuitized is a major limitation of annuities especially when inflation increases.
If you want inflation protection go shopping for it.
If you want inflation protection go shopping for it.
Where? Got an example to show that itâs currently offered? As I said, all Iâve seen offered for several years is fixed increase annuities, not true inflation indexed annuities.
AJ
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FWIW:
Inflation-Adjusted Annuities No Longer Available: Now What?
https://obliviousinvestor.com/inflation-adjusted-annuities-nâŚ
Itâs true: sometime in the second half of 2019 (Iâm unsure of the exact date), Principal stopped offering inflation-adjusted lifetime annuities, so theyâre now unavailable commercially at all, as the other insurance companies that had been offering them stopped a few years ago.
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Where? Got an example to show that itâs currently offered? As I said, all Iâve seen offered for several years is fixed increase annuities, not true inflation indexed annuities.
That matches my experience as well, although admittedly it has been a few years since I looked into annuities. IIRC, you would tell them what the annual increase you wanted and they would quote you a price. I never saw an option for a true inflation indexed annuity.
But the âinflation protectedâ annuities were crazy expensive. Which you would expect. Even with modest inflation, your buying power can be cut by 50% in 20 years. To make up for that the annuity price must be correspondingly larger.
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