Originally Posted by
Gunfighter
Fully agree, the commissions and fees destroy the value of annuities. I like Planetrain's signing bonus idea, with a 3rd option to remove the funds entirely from the market and invest in real estate. That is the worlds best annuity, especially when smartly leveraged into a $1,000,000 portfolio.
OK, $304K signing bonus? I'm in but not holding my breath on that. Annuities, you pay for the insurance (peace of mind) of a steady income stream with the annuity. Lots of people simply need the income or get tired of watching the S&P yo-yo around and need to "preserve" what they have. Purchasing from your local insurance agent is the most expensive way of obtaining one. There are products thru Vanguard and the like with way lower fees and simple products. Some offerings are wildly complicated and I'd completely avoid them. Buying an annuity and later deciding you want the $ back is gonna cost you dearly. A retiring pilot should have adequate assets to construct their own annuity. With Soc Sec and PBGC I already have 2 annuities that I don't completely trust. At least an annuity you purchase would be insured thru a different agency. Hmm, may be a lesson there. Thanks for the work R & I and its always a good day to distrust your financial advisor. OFG