For many years annuities have received some bad press. Big names such as Suzi Orman and Dave Ramsey have made negative comments on certain types of annuities. And even many financial planners bashed using traditional annuities like SPIA’s due to annuitization. You see, annuitization basically means forced income and in some instances your beneficiaries might lose out if you passed away early. There are so many misconceptions about annuities due to these SPIA’s (single premium IMMEDIATE annuities). For instance, the average Joe hears “annuity” and usually assumes it is “one of those SPIA’s that you can’t ever get your money back and if you die the insurance keeps all of your money.” That just couldn’t be farther from the truth with most of the popular annuity products today.
Recently, our very own government has become involved in creating some proposals that would essentially let American’s annuitize their 401k’s.
Check out the full article here at the Wall Street Journal