Is an Annuity The Worst Investment a Young Person Can Make?

should you buy an annuityOne of the best things that my mom ever did for me as a young adult was start an investment strategy for me.

She wanted to get me started with investing so she setup some investment account with her financial advisor for my benefit.

At the time, I was young, clueless and completely indifferent.

“No problem, mom. Appreciate it!”

When I began my career as I financial advisor I finally became very interested in what investments I had so I did some inquiring.

Turns out my mom’s financial advisor was purely an insurance agent and the “investment” I had was a fixed annuity paying 4.5%.

I remember thinking to myself,

“Why does a 24 year-old need a fixed annuity?”

Turns out it was a very legitimate question.
[Read more…]