Do You Recommend Annuities?

The short answer is rarely.  This is a subject on which we are extremely well read. In fact, we have published three journal papers on annuities (two on variable annuities with living benefit riders and one on single premium immediate annuities).  To summarize our position, while we acknowledge that there are situations in which annuities and annuitization may make sense, we find that the products are often more complex than they are marketed to be, and the number of client situations in which they are optimal is relatively small.  We have traditionally entirely avoided fixed index annuities.  

All readers should be aware that twe are an advice-only shop.  While investment and portfolio managent guidance is definitely and important element of the advice we give, we do not sell any products and we do not hold brokerage or insurance sales licenses.