Are annuities really safe?
I am planning to retire at or near the end of this year. I received an invatation to attend a retirement seminar last summer. I attended and the "sales pitch" sounded good so I made an appointment with this financial planner who was running the seminar. I have some property in another state which I will need to sell this year and I will have to pay a very high capital gains tax on it since it was a "gift" from my mother to me and I did not purchase it. The financial planner's first suggestion for avoiding the large tax (that I cannot afford to have to pay) was to "donate" the property to a charity which in turn would sell it and give me a life time income. After my death the charity would keep what ever was left. I do not want to do that because I have other family members that I would like to help a little. His next suggestion was an annuity. This guy works for the company that would issue the annuity. He says it is perfectly safe but is it safe? With so many companies going bankrupt I am afraid to put all of my money into an annuity when I sell the property. Does anyone have any advice on this? I know next to nothing about things like this. Thanks. Judith