ANNUITIES
I had a virtual meeting with my fidelity advisor today. I have a significant amount of cash in their premium money market account which is paying 4.16% today. He is recommending that I look at a three year annuity that they offer which is paying approximately 4.6%. I have always been skeptical of annuities because of the costs involved but he is telling me that a 100% of my money would be invested at the going rate. I challenged him but he assured me that it was correct. I have always was lived by the wisdom that there is no such thing as a free lunch. What do you think?
Terry Says
Read this to understand Multi-Year Guaranteed Annuities (MYGAs) — the insurance industry’s version of a bank CD — BUT NOT FEDERALLY Insured! (Insurance products are guaranteed by unfunded state insurance funds, so you must buy from a top-rated insurance company.)
This will explain — and give best rates:
https://www.stantheannuityman.com/annuity-types/myga
