Annuities spark plenty of debate between investors and financial advisors. These retirement savings vehicles are insurance products, and, like any other financial instrument, they have advantages and disadvantages.
Some advisors object to these products, often because an advisor who sells an annuity receives a commission, which is forbidden in fee-only financial planning. There’s genuine concern in the financial planning industry that some advisors put clients into annuities mainly for the commission when investing directly in the market would have been a better course of action.
The suitability of annuities depends on an individual’s or couple’s financial goals. Here are some pros and cons to be aware of.
This post originally appeared at U.S. News & World Report.