gif (1280 bytes) Q. How can I get the “best buy” on an annuity?
A. Although annuities are issued by insurance companies, they may be purchased through banks, insurance agents, or stockbrokers. The “load” (commission) you will pay to the middle-man will vary from 3% to 8% of your investment. The commission reduces the return you can get on your investment. Some insurance companies sell “no-load” (no commission) annuities directly to the investor. With the no-load annuity, all of your money goes to work for you earning interest or dividends. There is considerable variation in the amount of fees that you will pay for a given annuity, as well in the quality of the product. Thus, it is important to compare costs and quality before buying an annuity. Before checking out the product, it is important to make sure whether the insurance company offering the product is financially sound. Because annuity investments are not federally guaranteed, the soundness of the insurance company is the only thing you have to bank on. Consult services such as Best s, Moody
