[Angela]

..for someone close to or just starting their retirement years. From what I’ve read they’re a safe and conservative option. We’ve been at 80/20 (80% stocks/20% bonds), but as we get closer to retirement (about 5 years), we want to change that to about 60/40, which is more aligned with our personal risk tolerance.

[Matthew]

Your risk tolerance is probably too low. Retirement is a checkpoint not a goal.

Depending on age you may have 20-30 years to live after retirement and the growth of a higher equity percentage will help.

[Allen]

I’ve never seen a fixed index annuity with ‘no fees’. Annuities are almost all high front loaded fees with commission for the salesperson.

Can you send a link to the product?

[Linda]

There are definitely fees and commissions as well as potentially surrender charges. They are not all bad just know what you’re getting into fully.

[Jon]

Be careful who you listen to so far all this advice has been twisted. I have 30 years experience in selling annuities, license, securities, and insurance. Fixed annuities have no fee and provide guaranteed earnings. It’s a contract that pays a guaranteed earnings each year. in my 30 years, they’ve always paid more than bonds or bank cds.

The interest compounds tax deferred if you don’t take it out, there are penalties if you’re under 59 1/2. Find a good A rated company with the highest rate in your state.

Many advisors don’t use them because they can’t charge a fee.

[Jon]

Angela, a few years ago we recognized the 80/20 or 60/40 investment portfolio was greatly exposed to bonds and Jerome Powell warned us for months the FED was going to raise interest rates.

We expected bond values to drop as they did when the FED raised rates because the old bond isn’t worth as much as new bonds paying higher yields.

We moved clients out of risk and into fixed index during that time. Today because of high US Treasury rates you can move to fixed annuities paying higher and no more fixed index volatility.

[Forest]

FIA’s definitely are getting attractive as interest rates have gone up. Caps are well in to double digits now with no downside risk.

Same with buffered ETF’s. When the markets doing well you can make money throwing darts. This ain’t no buy and hope market, you gotta grind it out.

[Marty]

My mom passed away a couple of months ago at 82. For the last 6 years she has been living very well.

Off annuities . At some points safety is more Important than growth . The money was to take care of her. It was not for her kids.

[Angelo]

It’s an insurance product. You give up a tremendous potential for growth but you have insurance of the consistent return.

[Sandra]

Like bonds, it can be part of your portfolio. Personal finance is personal.

[Author]

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