Ken Himmler.com

In the past 25 years I have heard a lot of arguments for and against annuities. Most of the time it is about how the agents earn a lot of money. My opinion, so what – the end result is what is important. Where the bad rap comes in is when the insurance agent sell an annuity that should not be sold. This is like going to an auto dealership and the salesman trying to sell you a two seater convertible when you have three children. Annuities have been around over 100 years and will stay around because they serve a purpose, to provide a safe (not variable annuities) way to accumulate money and then a safe way to distribute that money. When you are setting up your retirement plan and you are concerned with lifetime income there are only a few ways to do it,  Social Security (maybe) pension (maybe) and an annuity. This is where my twenty five years of money management comes in and says why would anyone want to place all of their money in an annuity to create a lifetime income when (based on historical rates of return they could make so much more in the stock market. I will admit that my heart and soul is in the stock market because that is what I have been trained with and have managed for so long. Even with that said it assumes that the person is willing to ride out 20% – 30% ups and down in the stock market. Most people are not that emotionally detached and their emotions ride with the market. This is why in may cases even though I think the market will be a better return it is not appropriate for everyone. I would welcome the comments on good and bad experiences with annuities

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