Choosing an annuity isn’t easy. You’ll have to weigh up the benefits and costs of fixed and variable rate annuities, and qualified and non-qualified annuities. You’ll then have to choose a contract that you hope will deliver the highest returns.
Of course, you might get it wrong. You could choose a variable rate annuity from a reputable insurance company that you expect will grow at a rate of 5 percent a year. In fact, during the years following your purchase you see its value drop by 3 percent a year. The performance of funds can change. Past performance isn’t a guarantee of future success….