Annuities may sometimes make sense for a client, but the expenses involved can be difficult to understand and keep straight.
There are usually multiple expenses involved and it’s incredibly important to understand them.
(Source: Fidelity Investments Guide to Annuities)
This doesn’t serve as either endorsement or discouragement with respect to buying an annuity.
But since I definitely get these questions from clients, I like the above table as a tool to visually convey the expenses involved.
(Full Disclosure: I am a Fee-Only Financial Planner. My website is here.)