Never has been invested in stock market

[athena53]

I thought about that after I posted. Really, what's an annuity invested in? The market in some way, shape or form. It just annoys me how much he paid that insurance agent over the years, who was also supposedly his tax guy, and not a very good one at that. But that's another story.

Yes, but it's the company issuing the annuity that takes the risk. Even if it's a variable annuity, they might guarantee you a minimum rate of return, even in a down market. You pay for it, of course, through expenses built into the poremium and a cap on how much you can earn in a year like last year. Some people are willing to accept that range, knowing they won't lose substantial value in a bad market.