An annuity can turn part of a retirement portfolio into a stream of income, but the sales pitch rarely tells the whole story. Before signing a contract, ask eight questions that reveal what the annuity costs, what it guarantees, how easily you can access your money, and whether the recommendation actually fits the retirement plan.
Annuities come in several flavors, including fixed, fixed indexed, immediate, and variable contracts. Each works differently, and a feature that sounds fantastic in a presentation can carry restrictions that matter much more when money gets tight. A good recommendation should survive a little friendly interrogation, so grab the paperwork and start asking questions.
