Updated: Oct 15, 2020
This is an article by Stan "The Annuity Man" Haithcock, who has written several books on the topic of annuities. I will also add some additional comments because the article isn't complete and has a couple of inaccuracies, but I like the overall message.
Annuities are contractually guaranteed transfer or risk strategies
Annuities are contracts between you and the issuing life insurance company. In my opinion, they are not investments. They are contracts. So it's important to fully understand those contractual guarantees before signing any paperwork, and to know exactly what goal that transfer of risk policy is solving for. So the question is, what do annuities actually solve for?
I’ve come up with an easy to remember acronym that tells you whether you need a specific annuity type or not.