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Expert Q&A

What are some good (tough!) questions to ask my financial advisor who is recommending an annuity to me?

I am 54, married and have one grown child. I have several different retirement accounts (401k, brokerage accts, etc.), but don’t feel extremely prepared for retirement. My advisor is recommending an annuity, but I’m not convinced. Can someone recommend the right questions I should be asking to determine if this is truly a product I should be purchasing?


Related Topics: Annuities, Retirement Planning, Financial Planning
Related Tags: Annuity, Financial Advisor
Dennis Cherenkov
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By Dennis Cherenkov - Primerica Financial Services
Answered 8 months ago

Is it a fixed or variable annuity?


What fees will be charged and for what benefits?

What guarantees are there?

What are the withdrawal options?

Why should I pay that much money for that return?

When can I start drawing money? Do I have to annutize?

What are the surrender charges if I want to take this money elsewhere?

If you haven’t noticed some of the questions I suggest asking already hint that I am skeptical about annuities in general. If it is a fixed annuity that is being recommended, do not buy it. Go find another adviser.

Let me know if you have anymore questions.

Thomas Cunningham
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By Thomas Cunningham - Self Employed
Answered 9 months ago

Your advisor should be someone that you can trust and they should be able to explain (to your satisfaction) the reason for the annuity. If this is not the case I would start by interviewing other advisors. What is the purpose of the annuity? Without knowing what type of annuity or the purpose it would be hard to suggest any hard questions. Ask questions that pertain to liquidity (how you can access the money and when). <?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

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