annuities

Hello folks! It has been a few months since my last post and much has happened. The big event was my daughter's wedding in Kerrville,Texas on June 21. She and her new husband have accepted positions at Mississippi State University in Starkville, Mississippi as college professors. I'm a very proud dad.
On the insurance front several people have asked me about annuities lately. Frankly, I'm not a big fan of these largely as a result of the high commissions paid to agents who sell them. How high you ask? The first year commissions can run as high as 40-50% of the money you deposit into the annuity. This is why these financial vehicles lock you in for a number of years. That is right. Often you cannot withdraw your money for 5-7 years should you want or need a lump sum of money. If you do insist on a withdrawal the company that issued the annuity contract will hit you with a large withdrawal penalty.Once again exercise caution when buying annuities. Agents make money selling and the more they sell the more they make.
Have a safe, great summer.