Annuities are among the most profitable financial instruments out there - for the issuer not the buyer. Stay away from them, there are far better investments out there.
Once traditional retirement accounts (401k and IRA) are filled, start a brokerage account with S&P 500 index fund and as you learn more about investing tailor your investments to your needs.
With an annuity, you are probably limited to a fixed amount monthly. Loss of control over your own money.
The word Annuity should
You're trading those high returns for not going negative when the market crashes, right?
What? I can tell you this. Buffett isn't investing in an annuity.
He can control stock prices with a word so why would he waste time with an annuity?
Do not do it. High fees, lower return on your money. As a general rule, if someone is giving you a free steak dinner they are trying to make a lot of money off you. Annuities, time shares, etc.
Correct. Though there is often a -10% buffer or some other similar provision that says they will cover the first -10% of market decline, but then your account will still take a hit for anything past that amount.
He's a guy who has lived within his means and clearly knows investing. I have issues with some of the things he does but absolutely trust his investment advice. One of the main things I disagree with him about is his refusal to pay dividends while Berkshire is collecting millions in dividends. Let me worry about my taxes. Shouldn't be his concern.
That's their sales pitch, but read the fine print. If you are worried about the stock market, there are better ways to lower your volatility without paying someone else a small fortune to do it for you.
Buffett seems to be doing OK with his present business model. There are a lot of other places to find decent dividends if that is what you are after-- SCHD, VYM, VIG...
I've held Brk-b for years and have some VIG too. It's just something that irritates me when he brings up the double taxation on dividends. Because it's not always true if held in a Roth or a custodial. So he's pretty much blowing smoke. He could just leave it at that he thinks the shareholders are better off with him holding the cash and not bring up the taxes.
Yet you call him the putz. Interesting. Stocks he buys usually get a short-term bump but you don't create Buffett wealth by investing in long-term loser investments. You must be a crypto guy.
I'm not a financial advisor and it's been a while since I stayed in a Holiday Inn Express. Are you looking for immediate income or more long term? Online high yield savings accounts are paying more than 4%, CD ladders are looking good. If you have a taxable brokerage account, there are several very low fee ETFs that would work quite nicely. Those are just a few simple ideas. I'm sure others can chime in.
He's obviously a genius investor. That doesn't mean he's not a putz too.
You are right that there are many different types. It's a very complicated investment vehicle with lots of fine print. If somebody wants to buy an annuity, they better hire an attorney who will tell them exactly what they are buying. Insurance companies do not sell them in order to lose money.
Whole or variable life and annuities are the most expensive financial products you can buy from an expense standpoint.
Oh, is it that he has a 'D' as the first letter of his political registration? I hate to say it but if you think he's a putz just because of the 'D', that's pretty stupid. His vice-chair is Charlie Munger who has an 'R' for his party. Do you think Charlie is a putz too? Charlie must not think Buffett is too much of a putz despite their opposite political affiliations. The people who propagate the whole "I'm a Republican or Democrat and everyone else is an idiot stuff" for any reason is ruining our country. It's the reason we are going to get the idiot, Biden, versus the embarrassment, Trump, again.
