The Scoop On Annuities With Mike Miller

There are three different types of annuities: Fixed, Indexed, and Variable. 

1. Fixed annuities do have some advantages in an era of elevated interest rates. You usually get a higher guarantee than in other types of annuities, at least for a period of time. 
2. Variable annuities have a higher potential upside, but a higher potential downside as well. 
3. Indexed annuities are a product where you really need to understand the guarantee and proposal. It's difficult to understand what the guarantee really is because there is risk involved that may not be apparent. Indexed annuities look good in brochures but once you "bite into it," it can disappear like cotton candy. It's important to understand how the annuity works and whether you will actually make money if the market goes up.

Whatever the annuity, it always makes your money less liquid and available. And if you’re going to leave that money alone for a long period of time, why not invest in the things the insurance companies are investing in (the market)? Just take a long-term approach and diversify properly. 

There are some limited situations in which an annuity makes sense. That could be a situation in which you’ve exhausted other investment options. 

On Today’s Program, Rob Answers Listener Questions:

• I’m an 82 year-old widow and live on a very low income of just over $1,000 a month. I have a little bit of savings in case of car problems but I feel really lost when it comes to my finances. The only thing I own is my home. However, I need to know how to make out a will and an estate plan but I can’t afford an attorney or lawyer. Is there someone out there who can help me with all of this?
• I’ve got a 401(k) in the previous company that I worked for that has around $2,000 in it. I’ve been really wanting to change it so that it’s invested in a biblically sound company and they’re telling me that I can’t do that because it was set up through my company that I work for. I was just wondering if I need to pull the money out and reinvest it in an IRA or something so I can have more control over where it goes?

Resources Mentioned:

• Freewill.com
• Legalzoom.com
• American Red Cross
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA)
• FaithFi App
• Fidelity
• Charles Schwab