I've thought of buying an annuity, but I'm scared of some

[raccoon]

shenanigans like Enron or Carolina Investors (where a bunch of investors were gypped out of a lot of money in SC).

How can a person be sure something like that won't happen?

[A HERETIC I AM]

1. Here's some good info....

http://www.annuity.com/

Stick with the major, well established firms that have a long history of good, conservative performance.

The real answer to your question is - you can't be sure. But you can be careful on what company you choose. Since Annuities are essentially insurance products, stay with well known established companies.

[scruffy]

2. You need to carefully check into what you're buying . .. .

also you need to make sure an anuity is appropriate for your situation. Since they start out as insurance products, you need to be working with a strong, highly rated insurance company. Then you need to know the terms and provisions, as well as what sub-accounts you will be investing in (if it's a variable annuity). They can be complicated - I wouldn't go into one without doing a good deal of research.