Annuities: The 'Bad,' the 'Good' and the 'Misunderstood'

For some investors, annuities have an image problem. Read the headlines on the advertisements from a few marketing-focused financial advisers to understand why. They often include words like "scary," "avoid" and often just plain "bad."

The problem with this characterization is the total failure to distinguish between the broad categories of annuities and to analyze the features of each. As I said in a recent seminar, you don't drop your life insurance because you are unhappy with the claim adjuster on your automobile insurance.

In the business of annuities, there are vast differences between "savings annuities," which are designed to accumulate