conversation: User (Annuity__throwaway): "A relative recently started selling policies for Midland National. She looked at my wife's retirement accounts and told us that a fixed 12-year annuity would be a better investment for my wife’s $6,500 that she currently has in an old 401k. (she recommended we keep our other retirement account, which has much more money, in its current account for now.) \n\nShe said that while the current account can fluctuate up and down (and is currently down), the 12-year annuity can never go down, only flat or up. I know this is all part of the sales pitch, but are there any big drawbacks with us putting that money into this new account? \n\nThis is a close relative, and I understand that when you start these kinds of jobs, your friends and family are the first people you try to sign up. I don’t want this to be a problem in the family, so as long as it’s not a tremendously stupid decision, the $6K is worth it to me to keep a good relationship. We’d like to support her if it’s a relatively sound financial decision on our end. My wife and I are both in our thirties, so 12 years isn’t too long of a term. \n\nAny big questions I should ask? Are these annuities something to stay away from, or can they be a good decision?  "
  Self: "Annuities are great for a retirement vehicle. Also, depends on the agent and the annuity. I don't think this agent has your best interest in mind. $6k is very small in the annuity world and that amount is better invested elsewhere. Look into talking to a financial adviser and make a plan to get out of debt. "
  