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Is it time to think about annuities?

Tap 100 people with the question, “Would you like a guaranteed income for life?” and I suspect 100 people would say “yes”. Tap those same 100 people and ask, “Would you like to buy an annuity?” I think most would turn up their noses.
It’s not exactly clear why most Canadians react this way, since an annuity can be the equivalent of a guaranteed income for life, but it may have to do with the facts that annuities are not heavily marketed, that they depend on interest rates and that once you purchase one, you can’t get your money back. Having said this, there are circumstances in which it would pay to consider buying an annuity.
The circumstances? If you don’t know what your RRSP or RRIF is invested in. If you don’t have a TFSA because you don’t know what it is. If you’re not comfortable managing your own investments. If your mother, father and other relatives…

Read more at www.sherbrookerecord.com

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