Would someone be better off with and investment adviser that might promise a higher overall rate of return instead of the tax-free annuity?
It is very unlikely. If you gave the cash to the investment adviser, he has to guarantee an after-tax return higher than the insurance company because of the taxes and ongoing management fees that will need to be paid and deducted from his/her program. A structured annuity has no annual fees that reduce returns. Remember also, only life insurance companies can offer life payments.
Related Questions
- If the Overall Rate of Return is designed to give credit for investment returns in 2009 why is it 0.5% p.a. for plans issued after 20 July 2000?
- Would someone be better off with and investment adviser that might promise a higher overall rate of return instead of the tax-free annuity?
- Why won the investment adviser believe that structured payments are tax-free?
