annuities

ibd1 · Mar 25, 2026

Anybody here have an annuity? Are you glad you purchased one or regret it? Right now, interest rates are at or around 6%. If interest rates climb to closer to 7 then it may be a good time to lock in an annuity. I've always heard the negatives for annuities but when the rates were at 2 percent then buying an annuity would have been ill advised. Thoughts? And don't just say they are stupid. Explain why they are stupid.

hockey94 · Mar 25, 2026

I just moved some $$$ into an annuity, its guaranteed approx 6% return. Its based on the results of a mixture of stocks. If the return of the stocks are 10%, you get 6 %, if the return is 2%, you get 6%. No fees. Its for 3 years but, Its possible to take it out before, but, I will keep it there. I have heard a lot of negatives about annuities.

GarbageLLV · 2026-04-18T16:16:05-0500

Annuities are not great if you want to reap the rewards of the stock market. Annuities are great if you want a flat rate.

Doing an Annuity, you have no chance of growing your funds.

hockey94 · 2026-04-18T16:30:37-0500

GarbageLLV said:
Annuities are not great if you want to reap the rewards of the stock market. Annuities are great if you want a flat rate.

Doing an Annuity, you have no chance of growing your funds.

How is a guaranteed rate of return with no fees “no chance of growing funds” ? Btw, all of our funds are NOT in annuities.

GarbageLLV · 2026-04-18T17:30:13-0500

hockey94 said:
How is a guaranteed rate of return with no fees “no chance of growing funds” ? Btw, all of our funds are NOT in annuities.

OK. I misspoke. I meant that if you put all of your TSP into an annuity, you will only get a 6% return on your investment. If you keep your TSP active and withdraw from that, your TSP will continue to grow. And it can do much better than a flat rate of 6%. Also, I believe you have to pay into an annuity.

Gotrope · 2026-04-18T18:56:49-0500

hockey94 said:
I just moved some $$$ into an annuity, its guaranteed approx 6% return. Its based on the results of a mixture of stocks. If the return of the stocks are 10%, you get 6 %, if the return is 2%, you get 6%. No fees. Its for 3 years but, Its possible to take it out before, but, I will keep it there. I have heard a lot of negatives about annuities.

They are probably more attractive if you are 70+. The markets generally perform better than annuities over 10 year span.