Annuities can be a very valuable retirement planning tool if they are not misused. The two kinds of annuities are variable and immediate with the first kind being oversold to seniors while the latter kind is undersold. This column discusses how variable annuities are complex products and that consumers can be hit with penalties if they misuse them. Immediate annuities are less complex and can provide consumers with more benefits. These types of annuities are often used in Medicaid planning and can also be used to to guarantee a retirement income. It is also very important to find a top rated insurer that will be around for a long time to make payments. An experienced elder law attorney is a good person to seek out for more advice on selecting an annuity for retirement savings.
See Should an Annuity Be Part of Your Retirement Planning?, Elder Law Answers, December 4, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
