Q. I am a 60-year-old FERS employee and have decided to retire in March. With $250,000 in my Thrift Savings Plan, I am being courted by insurance companies to buy into their annuities. I can see some benefit but am worried that the administrative fees will take too much of my money. How can I overcome these anxieties?
A. If history has taught us anything, it’s that these “financial services” companies don’t care about you and your interests. They care about profits, which always come at their customers’ expense. They’ll do and say anything they think they can get away with to confiscate your money. They are your adversaries, not your allies. I know because I used to work for one.
I can’t think of a time when buying a deferred annuity contract is a smart move, and I can’t think of a worse time than now to buy a fixed annuity contract. Caveat emptor.