Vanguard's John Ameriks says annuities carry much value, but real-world issues and other disincentives make the products undesirable for many retirees.
If you actually buy an annuity inside your IRA or Roth IRA, a whole new set of minimum distribution rules applies to that annuity, says noted retirement planner Natalie Choate.
Christine Benz says investors should consider the annuity type, other tax-sheltered vehicles, liquidity needs, and fees.
Market trends have altered the benefits of several annuity products, and Morningstar's Kevin Loffredi examines what retirees should know before investing in these vehicles.
"Interest rates are having a large impact on overall annuity sales," says Catherine Theroux, director of Public Relations at LIMRA. "For fixed annuities, people are less inclined to lock in rates at this level."
Income annuity sales set new quarterly record, increase for fourth-consecutive quarter; fixed annuity sales drop 11 percent compared to 2011.
Annuity sales over all were down for the last quarter of 2012, but LIMRA found deferred and indexed annuities were among the most successful classes.
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