November 5, 1991
Annuities, those instruments which permit your money to grow free of tax until you withdraw it, are being promoted with a hard-pitch selling campaign. They're pushed through mass mailings and phone calls by a vast array of companies that now includes not only insurance firms but brokers, mutual fund firms and bankers. It's working: Last year annuities took in $54 billion in new money.But, as with any investment, you must do your homework. Find out all fees, understand returns and be wary of insurance firms with financial woes.
June 16, 1991
With insurance companies such as First Executive and First Capital going under and holders of their annuities unable to get ++ their money out, you might be a little leery if you get a call from a salesperson offering a variable annuity.But because of the way it is structured, a variable annuity may -- repeat, may -- be safer than a fixed annuity. That does not mean you should rush out and buy one. Variable annuities are as complicated as they sound. But with about $50 billion sold already, someone is buying them.