Why do financial planners bash fixed and indexed annuites?
1. Annuities are not the worst thing. They just are not for everyone. Variable Annuities: What You Should Know (SEC) Especially read the SEC’s gray box “Caution!” http://www.sec.gov/investor/pubs/varannt… 2. Annuities are better suited for those who have high tax brackets, high income and a need and a want for tax deferral on their investments that EXCEED their IRA, 401(k) and other qualified plan investments. 3. Investment hindsight is 20/20. It doesn’t matter what one should have done yesterday or 10 years ago if they did not make such investment. 4. It is generally NOT advisable (compliance risk issue) to place a tax deferred investment in a tax deferred or tax exempt account. IRS issues a Compliance Statement http://www.irs.gov/pub/irs-tege/epcrs_ov… 5. Annuities have annual contract fees plus annual expenses which are considered
