• Question
  • is a deferred fixed annuity a good idea- $200,000

    Asked by a 63 year old woman from Frederick, PA on 9/10/2012

    is a deferred fixed annuity a good idea- $200,000

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  • Categories: Fixed, Annuities

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • It depends on your situation and goals. This section of our site provides a number of articles on annuities, how to evaluate them and pros and cons: http://www.newretirement.com/Services/Annuities.aspx

    Annuities can be a great way to insure that you have income for life, but they also require you to commit and lock up your capital. If buying this fixed, deferred annuity helps you achieve your income goals and you think you'll have enough liquid assets to meet your needs before the annuity income stream starts - then it may be reasonable decision. However if this is a product that is being aggressively sold to you and the deferment period is long or the insurance firm is not highly rated then you should be careful.

    Either way you may want to consult with your family, accountant or a fee only financial advisor who can provide an unbiased second opinion. You can find some advisors here: http://www.newretirement.com/financial-advisor-marketplace.aspx

    You may also want to explore and get bids from multiple companies or brokers to make sure you are getting efficient pricing:

    https://www.newretirement.com/Services/Annuity_Calculator.aspx

    https://www.newretirement.com/annuity-marketplace.aspx

  • Login to rate this answer:   Answered on 9/11/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.