MoneyWise Live | January 22, 2019

Annuities 101

Show Notes

In a contest for the most confusing type of investment, the much maligned annuity would likely take first place. Love ‘em or hate ‘em, the truth is that even people who have annuities often don’t understand them. That’s because annuities come in so many different shapes and sizes. Financial planner and teacher Rob West is here to break it all down for you … to help you make wiser investment decisions. 

MoneyWise Live gets lots of questions about annuities and it seems people have mixed reactions to them they think annuities are good or bad and not a lot of middle ground.

  • Rob starts with a definition then - what exactly is an annuity?
  • So are there are different types of annuities?
  • Immediate and deferred.
    • Fixed annuity
    • Indexed annuity
    • Variable annuity

Last, Rob covers Liquidity of annuities and their fees/commissions.

Next, Rob and Steve answer these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:

  • If you're considering prepaying your funeral expenses, what are the Biblical and financial concerns of prepaying things that occur in the future?  Rob mentions https://funerals.org  in this topic.
  • If you're presently involved in an annuity, what should you ask about it to possibly move the money to another investment?
  • Biblically speaking, should it strictly be the man who attends to finances or can it be a woman as well?
  • If you've been willed an annuity by beneficiary election that will force you to incur a lot of taxes but you feel it should be distributed to your two other brothers, how should you proceed? 
  • If you are participant in a credit card rewards program who sent a check you never received, what are your options?
  • If you're approaching 65 and concerned that you can't make your retirement savings last for your retirement years, are there things you can do?
  • If you've heard that there is a penalty for registering for Medicare around your 65st birthday, what are the particulars?
  • If you've been asked about withholding when starting your 401(k), what should your answer be?

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