Should a Federal Employee Buy an Annuity?

A federal employee recently asked me if he should put all of his Roth IRA money in an annuity. This is something that was being sold to him by an insurance agent at a FERS retirement seminar that he attended.
We went through the pros and cons of the annuity and characteristics of Roth IRAs to help him make a decision.
His next question was: is an annuity ever a good idea for a federal employee? Great question!
Article on federal retirement seminars and annuities.
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Article on the TSP annuity
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[@kenedward4585]

There are different kinds of annuities! Most suck, but an MYGA Fixed, deferred annuity is just like a CD but with higher rates and tax advantages. MYGA's are a great way to add long term, safe income streams to your portfolio! Just make sure to pick a company that is rated highly in Weiss Ratings. Up to $250k is insured by the state.

[@shep68]

The vast majority if not all of these insurance annuities are a grift. Agencies need to do better when offering retirement seminars. It gives the impression to younger and/or less savvy employees that the agency/US govt has put their stamp of approval on everything being covered. You don't expect to be conned while attending "official" events like these and would have no reason to believe something shady is being presented. I look at it this way: you've spent 20-30 years saving $ for your golden years. Why in the world after all that sacrifice would you turn over control to someone else, and pay them for the privilege no less. Managing your own accounts is not that hard folks. Heck these days you can leave it all in the TSP which limits your ability to over complicate. If you need help hire a fee only advisor charging a fair flat rate, and never give away a percentage of your retirement for someone else to manage. They'll "manage" the money out of your account and into theirs!

[@financialstrategist1020]

You have to take the money out of the Roth IRA because you can lose money since its dependable on the market situation which is crushing by the day...But the annuity is not. Its guaranteed not to lose.

[@FederalRetirementPlanning]

Not following. The G fund doesn’t lose due to market fluctuations. U can have an annuity in a Roth as well so no, u don’t have to take funds out of a Roth