Annuities explained: are annuities a good investment for retirement?

#82: Are annuities a good investment for retirement?With $250 billion in sales each year, and $2.5 trillion in retirement annuity assets under contract, annuities comprise a huge slice of US retirement assets.Understanding annuities – whether annuities are right for you, and how annuities fit into your retirement strategy – can get complicated given all the annuity options out there and the extreme uncertainty in today’s markets.So this week, I sat down with Stan Haithcock, aka “Stan The Annuity Man,” to deep dive on annuities. We chat about how annuities work, why annuities are not investments (in the portfolio sense), and why there is no such thing as “best annuities.”We discuss:What annuities are and what purpose they serveThe different types of annuity options (immediate annuity, deferred annuity, fixed annuity, variable annuity, indexed annuity, multi-year guaranteed annuity, life annuity)How annuities account for inflationThe mechanics of how to buy an annuityHow insurance companies that sell annuities make moneyThe different type of annuity fees you can expect, and typical all-in costs for different annuity typesHow to vet the insurance companies that sell annuitiesHow to vet an agent and questions to ask before buying an annuity from themHow agents who sell annuities are compensatedAnnuity taxes and the tax profile of annuitiesBasic protections your annuity gets if the insurance company you bought it from goes bankruptWho annuities are best suited for, and whether annuities are a good idea for early retirees (FIRE)Check it out here:https://hackyourwealth.com/annuitiesHave you purchased any annuities before, either for yourself or a family member? What kind of annuity did you buy, and why? Let me know by leaving a comment.Don't miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:The Annuity ManNational Organization of Life & Health Insurance Guaranty AssociationsSocial Security: How it works and optimal claiming strategies (HYW050)How Medicare works: eligibility, enrollment, cost, and coverage options (HYW048)How Social Security Works: The Ultimate Guide For LaypersonsRetirement withdrawal calculator: How long will your savings last in retirement?Schedule a private 1:1 consultation with meHYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.