The truth about buying annuities ["annuities can make or break your retirement ... "

Avoid the retirement annuity minefield...don’t make an expensive, catastrophic mistake! · The truth about using annuities to protect your future · The truth about hidden fees that could cost you a fortune · The truth about the newest types of annuities–good and bad Simply the best thinking…the truth and nothing but the truth This book reveals the 50 CRITICAL FACTS you must know about annuities before you buy “Steve Weisman has accomplished a feat of immense proportion by explaining one of the most complicated investment vehicles in ways that average Americans can easily understand.” Robert Powell, Editor, “Retirement Weekly,” MarketWatch Introduction v Truth 1 The history of annuities 1 Truth 2 Immediate annuities 5 Truth 3 Fixed rates 9 Truth 4 Deferred annuities 13 Truth 5 Annuity fees 17 Truth 6 Variable annuities 21 Truth 7 Variable annuity investment choices 25 Truth 8 Actively managing variable annuity sub-accounts 29 Truth 9 Indexed annuities 33 Truth 10 More about indexed annuities 37 Truth 11 Calculating index changes 41 Truth 12 Inflation protected annuities 45 Truth 13 Tax-sheltered annuities 49 Truth 14 Annuity settlement options 53 Truth 15 Tax deferral 57 Truth 16 Annuity risk 61 Truth 17 Annuity death benefits 66 Truth 18 Annuities and income taxes 69 Truth 19 Tax-free 1035 exchanges 73 Truth 20 Charitable gift annuities 77 Truth 21 Split annuities 81 Truth 22 Joint and survivor annuities 85 Truth 23 Shorter surrender annuities 89 Truth 24 Longevity insurance 93 Truth 25 Inheriting an annuity 97 Truth 26 Variable Annuities versus variable universal life insurance 101 Truth 27 Choosing between mutual funds and an annuity 105 Truth 28 Annuities and asset allocation 109 Truth 29 Asset allocation and laddering annuities 113 Truth 30 Minimum required distributions 117 Truth 31 59 ½ 121 Truth 32 Annuities in IRAs 125 Truth 33 Annuities and 401(k)s 129 Truth 34 More about annuities, IRAs, and 401(k)s 133 Truth 35 Annuities for children 137 Truth 36 Bonus credits 141 Truth 37 The Pension Protection Act, annuities, and long-term care 145 Truth 38 Annuities and Medicaid 149 Truth 39 Annuities and reverse mortgages 153 Truth 40 State Guaranty laws 157 Truth 41 Annuities and creditor protection 161 Truth 42 Getting out of an annuity 165 Truth 43 Annuity scams and senior citizens 169 Truth 44 Annuities and class actions 173 Truth 45 Prospectuses and annuities 177 Truth 46 Free looks 181 Truth 47 For whom annuities are best 185 Truth 48 Steve’s annuity rules part one 189 Truth 49 Steve’s annuity rules part two 193 Truth 50 Where to go for Information 197 About the Author 201 Contents......Page 4 Introduction......Page 6 TRUTH 1 The history of annuities......Page 8 TRUTH 2 Immediate annuities......Page 12 TRUTH 3 Fixed rates......Page 16 TRUTH 4 Deferred annuities......Page 20 TRUTH 5 Annuity fees......Page 24 TRUTH 6 Variable annuities......Page 28 TRUTH 7 Variable annuity investment choices......Page 32 TRUTH 8 Actively managing variable annuity sub-accounts......Page 36 TRUTH 9 Equity indexed annuities......Page 40 TRUTH 10 More about equity indexed annuities......Page 44 TRUTH 11 Calculating index changes......Page 48 TRUTH 12 Inflation-protected annuities......Page 52 TRUTH 13 Tax-sheltered annuities......Page 56 TRUTH 14 Annuity settlement options......Page 60 TRUTH 15 Tax deferral......Page 64 TRUTH 16 Annuity risk......Page 68 TRUTH 17 Annuity death benefits......Page 72 TRUTH 18 Annuities and income taxes......Page 76 TRUTH 19 Tax-free 1035 exchanges......Page 80 TRUTH 20 Charitable gift annuities......Page 84 TRUTH 21 Split annuities......Page 88 TRUTH 22 Joint and survivor annuities......Page 92 TRUTH 23 Shorter surrender annuities......Page 96 TRUTH 24 Longevity insurance......Page 100 TRUTH 25 Inheriting an annuity......Page 104 TRUTH 26 Variable annuities versus variable universal life insurance......Page 108 TRUTH 27 Choosing between mutual funds and an annuity......Page 112 TRUTH 28 Annuities and asset allocation......Page 116 TRUTH 29 Asset allocation and laddering annuities......Page 120 TRUTH 30 Minimum required distributions......Page 124 TRUTH 31 About 59 1⁄2......Page 128 TRUTH 32 Annuities in IRAs......Page 132 TRUTH 33 Annuities and 401(k)s......Page 136 TRUTH 34 More about annuities, IRAs, and 401(k)s......Page 140 TRUTH 35 Annuities for children......Page 144 TRUTH 36 Bonus credits......Page 148 TRUTH 37 The Pension Protection Act, annuities, and long-term care......Page 152 TRUTH 38 Annuities and Medicaid......Page 156 TRUTH 39 Annuities and reverse mortgages......Page 160 TRUTH 40 State Guaranty laws......Page 164 TRUTH 41 Annuities and creditor protection......Page 168 TRUTH 42 Getting out of an annuity......Page 172 TRUTH 43 Annuity scams and senior citizens......Page 176 TRUTH 44 Annuities and class actions......Page 180 TRUTH 45 Prospectuses and annuities......Page 184 TRUTH 46 Free looks......Page 188 TRUTH 47 For whom annuities are best......Page 192 TRUTH 48 Steve’s annuity rules, part one......Page 196 TRUTH 49 Steve’s annuity rules, part two......Page 200 TRUTH 50 Where to go for information......Page 204 About the Author......Page 208 Annuities have become one of the most popular ways to save for retirement and also one of the most misunderstood, overhyped, and dangerous investment vehicles available today. Some annuities are worth the money... but too many are flawed, overpriced, and packed with hidden fees that make them absolutely horrible investments. In The Truth About Buying Annuities , consumer finance expert Steven Weisman helps you make smart decisions about annuities and avoid the lies, misrepresentations, and ripoffs that await uninformed investors. From start to finish, Weisman delivers quick, bite-size, just-the-facts information and plain-English explanations you can actually use. You'll learn all you need to know about immediate, deferred, and variable annuities; actively-managed vs. indexed annuities; inflation-protected and tax-sheltered annuities; and more. Weisman explains the impact of annuities on taxes, Medicare, Medicaid, long-term care, and your other retirement plans. He presents crucial, hard-to-find information about death benefits, joint and survivor annuities, alternatives to annuities, assessing annuity risk, avoiding scams, and even how to escape from a bad annuity you've already purchased. Unlike some books on annuities, this one's simple to read, simple to use, up-to-date, and complete: it's the only annuity guide you need!