Bonus annuities offer some amazing benefits including a very lucrative bonus!
If you invested $1,000,000 and received a 10% bonus that is $100,000 added to your contract value just for investing! Wow!
But you might want to gently press, not slam, on the brakes for just a minute to learn about the bonus before getting too excited. Unfortunately there are a lot of details that go along with the money. If you keep a cool head and do your best to make sure the bonus annuity works for you the bonus can be yours!
What are the details exactly that go along with the bonus annuity? Time invested, withdrawal limitations, cap rates limitations, fee enhancements are just to name a few. It might seem like a short list but the magnitude of the list should be felt before moving on. Read it again!
Understanding all of details must be completely understood before investing in the bonus annuity. Why? How about losing your entire bonus before being able to access it? What about avoiding a 15% surrender charge? What about enhanced fees that eat away your return and basically eating your bonus before you get a chance to use it? What about cap rates so low that your earnings are limited so much you are basically losing interest that you could have been earning?
Seems a little negative right? What you are hearing from me is caution and not negativity. I use bonus annuities all the time for my clients when the situation is right. They love them! Why? They understand how they work and why they are using them for their retirement.
Take a look at the new article - What Is A Bonus Annuity? - to learn more.
Image by 401k at Flickr.com
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