Tuesday, August 18, 2015

Downside of Annuities

                    
You can't withdraw prematurely from an annuity without being penalized. Fixed and equity-indexed annuities are subject to these early surrender fees, specified in the contract. This is usually seven years.
                       
What’s more, earnings are taxed as income, not at the long-term capital gains rate.
                       
Moreover, annuities usually charge more than 1% a year for the death benefit, something you may not require as your objective..(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

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