You will get a Social Security check when you retire. If you doubt me, look around and count the votes. How many among us would vote to abolish Social Security’s safety net? What would be the future of any politician who tried? There’s a good deal of talk about privatizing Social Security, leaving beneficiaries to…

Many a married couple is going to be in for a surprise. When one of you dies, the annuity may not behave the way you think. These contracts are complicated, with lots of moving parts. Unless you buy right—and title the annuity correctly—you might not get all the benefits that you thought you paid for.…

Yes, if you’re in a fixed-rate annuity and the insurer is stiffing you with a truly rotten rate—say, 3 percent in a 4.5 percent world. Switch to a CD-type annuity instead. Yes, if you’re in a high-cost variable annuity and will switch to a low-load annuity. Probably, if you’re in a high-cost variable annuity and…

If you inherit a tax-deferred annuity from your spouse, you have all the same withdrawal options that your spouse would have had. You can keep the annuity, switch to another one (in a tax-free exchange), or take the money out on whatever schedule the contract permits. Ordinary income taxes are due on the earnings when…

If you think you are a candidate for an annuity, go low-load. Their costs are small, compared with the rest of the products on the market, and you can take out your money whenever you want, without paying a penalty. Low costs, total flexibility. Why would you look at anything else? It may take only…

On the surface, variable annuities (VAs) seem heaven-sent to anyone who buys mutual funds. You generally start the annuity with $10,000 or $15,000, depending on the company. That money is invested in mutual funds—subaccounts, in an annuity, speak—and accumulate tax-deferred. There’s the usual range of investment choices: U.S. stocks, international stocks, bonds, and a balanced…

Do you remember this commercial? It first aired in 2008 and has become a main stable as one of the most hated, but most remember commercials of all-time. I have a structured settlement and I need cash now! Call J. G. Wentworth! 877 cash now I have an annuity but I need cash now! Call…

It depends. Fixed annuities are backed by bonds and other assets in the insurance company’s general account. They’re valued at the cash guaranteed in the contract plus any interest that has been credited. Failing insurance companies are placed into rehabilitation. If another insurer buys the business, your current interest rate should be good (although it…

It is recommended that you buy only CD-like, multiyear annuities that pay a fixed rate over a specified period of time. This is because you know exactly what you’re getting. At the end of the term, the insurance company has to offer you another good rate to keep your business. It can’t play games with…