Question : how do i choose a tax shelter annuity plan or company?
- asked by Linda G
All Answers:
Answer #1
find a good financial adviser or broker whom youcan trust.I use Edward Jones, but there are manyreputable companies to choose from.
- answered by thetravelinggardener
Answer #2
Depending upon your age and objectives...chancesare likely that you Don't really even want tochoose a tax shelter annuity plan. Unless you'renearing retirement age and want to buy a prepaidannuity to provide some guarantee of retirementincome...you can probably do better in other kindsof investments. Annuities are primarily aninvestment vehicle created to make insurers andother providers a lot of money...they're notreally a great help to the purchaser. Theygenerally have high "exit-fees" for several of theearly years...and their guarantees of returns aregenerally less than you'd get from a decentdiversified stock mutual fund. If you're in yourpeak earnings years...you should first be maxingout your tax deferred retirement accounts. Ifyour company has a 401k plan...max it out. Ifyour company has no plan...then max out your IRA. If you're self employed...then max out an IRA orother retirement plan. If you meet the incomecriteria...even a Roth IRA might be a good choiceto shelter income for the future. You can evenbuy a good S & P 500 fund and let it sit in ataxable account and still likely do better thanyou'd do with an annuity. But, if you still wantan annuity...start with an insurance company thatyou currently do business with. You can also talkwith your banker and you can visit with your stockbroker. Almost all of these people would likeyour annuity money. If you're going to buy anannuity; try to max out the guaranteed returnamount and minimize the amount and term of the"early exit-fees". Do some due diligence todetermine that the issurer is solvent, stable,honorable, etc. Good luck.
- answered by dltcpa
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measure and fulfill your financial needs
