Financial Advisor Don Dirren Discusses Whether or Not Annuities Are a Good Investment

Christel Deskins

Press release content from NewMediaWire. The AP news staff was not involved in its creation. https://apnews.com/newmediawire/822b46e8a2fcb59dde02df3574ab6946 Click to copy Phoenix, AZ – ( NewMediaWire ) – September 22, 2020 – Financial advisor Don Dirren recently discussed the good, the bad, and the ugly of annuities as investments.  You’ve probably heard […]

Press release content from NewMediaWire. The AP news staff was not involved in its creation.

Phoenix, AZ – ( NewMediaWire ) – September 22, 2020 – Financial advisor Don Dirren recently discussed the good, the bad, and the ugly of annuities as investments. 

You’ve probably heard the term “annuity” in the media. However, many potential investors don’t know exactly what the term means and if an annuity is a good or bad investment. Financial advisor Don Dirren recently answered several questions about annuities and whether or not they are good investment options.

“First of all, it’s important to understand what an annuity is,” Don Dirren said. “Defined as simply as possible, an annuity is an amount of money paid annually or in certain intervals and backed by an insurance company.”

Don Dirren explained that an annuity can be in the form of social security payments, pension payments, or other defined payments. However, annuities can also be defined as a contract between a person and the insurance company, and this is the type of annuity Don Dirren is discussing as an investment option. In this case, your money is invested in exchange for certain disbursement or growth guarantees. These disbursements or benefits can start now or in future years. 

“Annuities are not for every type of investor,” Don Dirren said. “They can be good for some investors and less satisfactory for others. That’s why their value is so often debated.”

Don Dirren explained that annuities can be good for investors who prefer low-risk investments. Because annuities provide guarantees, they also provide peace of mind for the investor. Don Dirren stated that annuities can be good investments for those who want their available money to be guaranteed for life. Such as, if they are worried about outliving a retirement fund.

Don Dirren added that annuities can be ideal if you’ve already maxed out IRAs and 401(k) plans and have additional money you’d like to put away for retirement. They can be especially beneficial if you’re in a high-income tax bracket. Don Dirren explained that the best option when considering an annuity is to meet with a qualified financial advisor. An advisor who has your best interest in mind can help you determine if an annuity is the right choice, or if another investment option would be more ideal for you. 

“It’s important to speak with a financial advisor who has your best interests in mind,” Don Dirren finished. “A qualified advisor can help you determine whether or not an annuity is a wise investment option for your individual wants and needs.”

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