You Don’t ‘Buy’ Annuities
Written By: Robert Zimmerman | H&R Advisory Service, LLC
Most people are lead to believe that annuities are a purchase –same as buying a candy bar. Or an automobile!
The problem is that you can immediately use your sense of touch to evaluate such a purchase. You cannot do this with a bunch of words on a piece of paper.
Give up the notion of buying an annuity, and think of it in the same way as you think of having money in a checking account. It is a way to put money to work. Yes, it is a different way (and for many purposes a far superior way), but it is still a way to use your money.
If you purchase an automobile, what you are really doing is buying a method of transporting people and things from one place to another. On the other hand, the annuity is simply a method of putting money in a place where it is safe until you need it in the future.
Having seen so much confusion about the idea of annuities, it motivated me to write a book. The book is called ‘The Annuity – from Mystery to Mastery’. It is not a topic that most people will find exciting. But the knowledge does make some exciting things happen.
What excitement motivates you? A trip to a foreign country? A new home? A round of golf at Augusta? A dinner with friends at a fancy restaurant?
All these things take money, and that is what money management is for. So look at your annuity as a money management tool for that is its only job. Just as a fork is a specific tool to help at the dinner table. The annuity is just more intricate of a tool for a specific purpose.
Educational Material on Annuities