Perhaps the most important factor in buying an annuity and the most ignored, is the attitude of the annuitant.
At a time of life when the would-be annuitant has time to think about financial affairs, he or she just waits. They collect opinions about what to do with their retirement pensions and annuities from co workers, other retirees, banks, mutual fund companies and all sorts of online information.
Will This Help With Buying An Annuity?
Absolutely none of this will help. There is just too much information, misinformation and lack of proper information to make a satisfactory decision. How do I know this? Because for many years people have been calling about annuities and telling me that rates are high , rates are low, its too soon, its probably late, don’t know when to start, among many other comments.
What you are trying to do with a life annuity is to guarantee yourself a significant income that you cannot outlive. That’s it; nothing more nothing less. You can’t compare an annuity to a GIC, mutual fund or segregated fund, a bond or anything else. That’s because a life annuity is guaranteed for the whole of your life and any guaranteed period you choose.
There is no other product that can be compared to a life annuity.