I hear this question almost every day. It is by far the most asked question about annuities and rightly so. Accessing your money should always be a top concern when making any investment. What if something better comes along or what if you have a major emergency and need access to your money? Or what if your annuity doesn't perform they way that you and your financial advisor thinks that it will?
There is a lot that goes into this question. What you need to know is how much can you get for free and how much is going to be subject to surrender charges? And then, what is the surrender charge? Sometimes annuities have a bad reputation and the reason is surrender charges. They are misunderstood for many reasons and its best, before you get upset, to learn more about how surrender charges work.
The good news is that you have a contract that tells you specifically what you will pay at any given point in the future for access to your money. This contract is an amazing facet to an annuity that isn't talked about very often. A contract is virtually unheard of in investing. Do you get a contract with a stock? Do you get a contract with a bond? Do you get one with a mutual fund? No way! But with an annuity you get to know exactly how much your fees and charges will be even 10 years into the future! Check out the Case Study - Understanding Annuity Surrender Charges.
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