My cousin is enamored of an insurance salesman who specializes in selling index annuities. I have heard that SPIA's are the way to go with annuities. My question is, are index annuities more or less desirable than SPIA's (Single Premium Immediate Annuity) and why?
Her husband has a lump sum from an inheritance and AFAIK it's just sitting in a bank drawing ?% interest. I don't know if this account will even keep up with inflation. I'm casting about for a vehicle which will provide them with an income stream to supplement their soc sec income. I think they can do better than bank-account interest. They owned an annuity at one time but got burnt with a hefty withdrawal fee when they tried to take their money out.
Personally, I own shares of GOF which covers some of my monthly expenses and so far I've been very happy with it. GOF pays monthly and has a yield of 17.93%.
Thank you.