In order to ask the proper questions before getting involved with annuities you should probably understand the three types. Tom and Brendan discuss the three types of annuities in this video, and also cover different questions that you should be asking before putting your hard earned money into one. The three types of annuities are immediate, fixed, and variable. Most people understand what an immediate annuity is already, but people are a little less knowledgeable when it comes to fixed and variable annuities.
Many investors getting involved with a fixed or variable annuity are under the impression that they are tax free alternatives to CD’s. This is not necessarily true and Tom explains why in an easy to understand manner. People tend to forget that all annuities are insurance products, which is a big mistake. Make sure to watch this week’s Mullooly Asset Management video to learn more about the three types of annuities.