They are a lousy investment, but they are great insurance!<\/p><\/blockquote>\n
There is a follow-up article available via Annuities, Part 2<\/a>.<\/p>\n
Look for the research link!<\/p>\n
Annuities arouse strong emotions in many investors. Some despise them, others won’t consider anything else – and, I’ve noticed, few of these antagonists are able to back up their views with hard data and logical argument. In many cases, it seems that many investors will strongly deprecate Straight Preferred shares, while expressing adoration for annuities simply because the price of Straights is so volatile … ignoring the fact that the price of annuities is also extremely volatile, but since it is not reported honestly to the purchaser nobody notices. It’s a lot like GICs!<\/p>\n
In this 2010 essay (which builds upon the PrefBlog post Preferred Shares & Annuities<\/a>) I looked at annuities as a component of a retirement portfolio and concluded in part:<\/p>\n They are a lousy investment, but they are great insurance!<\/p><\/blockquote>\n There is a follow-up article available via Annuities, Part 2<\/a>.<\/p>\n Look for the research link!<\/p>\n
![](\"http:\/\/www.prefblog.com\/images\/ad_AnnuitiesPart1_PL.gif\")
<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"