I'm feeling unsettled.. my financial advisor advocated purchasing one of these. Most of my retirement money (80%) is in this product. I'm 43, I'll get a pension (as a teacher) when I retire…. should I wonder if my advisor was acting in my best interest. Is this the best choice of products out there or should I be asking for other options (beside US company stocks)… Help!
Annuities are commonly pushed by banks and investment advisors for the simple reason that they generate large commissions for the banks or investment advisors. Annuities are a complicated product - they come in many different forms, but generally they are a poor investment for anyone looking to build a retirement fund. They are costly and have lousy rates of return, even in a strong market economy. Generally they are good investments for the retiree who has a large sum of money to invest and who doesn't want to deal with having to manage it him/herself. The retiree can simply purchase an annuity contract from an insurance company and then sit back and receive regular monthy annuity checks from the issuer for life without having to worry about managing an investment portfolio. You might consult with an investment advisor from one of the discount brokerage companies, Charles Schwab is one but there are many of them, and get a second opinion. The consultation is free. But, without knowing anything more about your financial situation then the info you provided above, I suspect that your financial advisor may have put you into an annuity contract because of the generous commissions that he no doubt received.
The purchase of a variable annuity is a complicated decision which should be based on several factors. The SEC's website is a good place to start.