Opinion on Fixed Annuities?

Q: How do you answer a world of emails? How do you get paid? I could ask a million questions, but let me give you two.

What do you think of fixed annuities? And how does a poor, undiscipled person... leave enough money to bury themselves without a little ($25K) whole life. They could use up their money on health care?

A: It takes time to answer all of the emails that I receive, but I believe strongly that the individual investor should have someplace that they can turn for help and/or to have a simple financial question answered.

I serve as a money manager to a small group of clients nationwide. That part of my life pays the bills and allows me to answer reader's questions without cost.

My opinion on fixed annuities depends on the type. If you are referring to a fixed annuity where the return is based on a market index, then I generally am opposed to them.

I don't have a problem with the traditional fixed annuity that has a set rate of interest and that interest rate is locked in for the entire period. In those situations, the person knows exactly what they are going to get every year. It makes sense for someone to find ways to pay for their burial expenses.

Your posted comments on this and other questions are welcome.
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