All Annuities Are Not Equal: Do Your Homework Before You Bash Or Buy

A well-rounded retirement portfolio could have a spot that the right annuity (and RIGHT is the key word here) might fill very nicely.

A man in a tie sits at a desk.
(Image credit: Getty Images)

When you say the word “annuity,” it seems the typical reaction is a wince. There might even be a slight gasp through gritted teeth or an involuntary shaking of the head.

Although they’ve been around for years and years and can play a critical role in many retirement plans, annuities have gotten a bad reputation over the past decade or so. And that’s too bad, because they can be a useful tool if you know what you’re buying and what it’s meant to do.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Michael Fritts, Investment Representative
Investment Adviser Representative, Fritts Financial

Michael Fritts is a licensed insurance agent with Fritts Financial, based in Knoxville, Tenn. Michael is an Investment Advisor Representative with Brookstone Capital Management, a Registered Investment Adviser. He received a bachelor's degree from Columbia College in Chicago, where he graduated magna cum laude. His goal is to help create retirement strategies that are custom-suited to clients by using a variety of investment and insurance products.