In what situation is paying an annuity an invenment.?

Question

In what situation is paying an annuity an invenment.?

Answer 1

As a general rule, variable annuities are very good for the sales Representative. Because of the high fees, hidden and not hidden, the Representative can make more money on these than any other investment sold.

Unfortunately, 98% of these annuities are sold to people that will get no benefit from the so called "tax advantages". The fees and "earnings" rate for taxation virtually wipe it out.  As long as this doesn't bother you... continue to sell them.

I be hard pressed to call an annuity an "investment".