Divided is how I would describe current opinion on annuities in business retirement plans and annuity retirement plans. The division is well deserved. Sometimes annuities are the worst idea ever and sometimes they are the best idea ever for a retirement plan option. The difference lies in the individual most of the time. Is an annuity right for you?
Of course the other obvious factor is the quality of the annuity in the plan. High expenses usually indicate an under performing plan. To know whether an annuity has high expenses you need to compare it with other similar annuities.
The expert's opinions are usually divided because of the expense issue and the ability to make a variety of investment decisions within the plan. I tend to agree with both of these arguments, expenses and variety, until you add in the other amazing benefits that annuities offer other than just pure performance. After the other benefits are calculated in, I feel like it is an - either or position - that can end up very positive or just neutral.
Do you have an annuity retirement plan? Keep in mind we are not talking traditional pension like benefits although those are always available when using annuities. We are talking a variable annuity retirement plan with no intentions of annuitizing.
If you have an annuity retirement plan then look into the "extra" benefits of the annuity. Depending on your exact situation the "extra" benefits like guaranteed income for life without annuitizing might be the best add-on and decisions you have ever made concerning your investments. You may still be too young and if so then just keep it in mind to add in the benefits at a later date.
What are the pros and cons of annuities in business retirement plans?
For the cons read - The Cons Of Annuities In Business Retirement Plans
For the pros read - The Pros Of Annuities In Business Retirement Plans
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