Are annuities a good investment?

“In any economy, and at all stages of the financial life cycle, annuities can provide protection and guaranteed income, helping clients prepare to navigate adversity now and in the future,” said Guymon. On the other hand, financial advisor Corey Noyes, founder and owner of Balance Capital, isn’t sold on the value of annuities for his clients.

What is the difference between annuities and mutual funds?

Annuities also carry fees and surrender charges, but they can lessen over the length of the contract. In general, there are several key differences between annuities and mutual funds and ETFs:Minimum investment. Annuities generally require a higher minimum investment amount than mutual funds and ETFs.

Do variable annuities cost a lot?

Owners of certain types of annuities can end up paying high fees. For instance, a variable annuity might charge fees between 2% to 3%, per Nationwide, which can shrink the value of your account and the return on your investment. Among the costs you might encounter with a variable annuity are: Mortality and expense risk charges.