Should I Buy an Annuity to Invest My Money?

People often ask, when being approached about buying an annuity, is they should buy an annuity to invest their money. Basically, is an annuity a good investment? Annuities have been marketed as a safe investment, safer than stock and can be even safer than bonds. However, investing in an annuity is not without any risks. See Annuity risks. If you are going to invest your money in an annuity, make sure you know what you are getting into. Annuity investing is not for everyone.

Some people don't like Annuities, should I get an annuity?

Like all investments, annuities are not for everybody. Some people prefer investing in stocks or options and they cannot do that within an annuity product. Some people are risk-tolerant and do not need guarantees. If guarantees are not what you seek, then maybe you want to explore other investment choices. For annuities, you are trading some flexibilities for the guarantee features. See also below for the fees explanation.

I don't understand Annuities but I want the Guarantee, should I be investing in an Annuity?

You should invest in what you know and understand. The more you understand, the more comfortable you are with your investments. By reading this website, you will have a better understanding of annuities. Familiarize yourself with the concept of annuities and ask questions. Before you invest, make sure you are at least comfortable with what you are investing in. You don't have to be an expert in annuities - just study the annuity that you are interested in. Many annuities are different so you can stick with the one you are interested in.