Get out of Annuity?
We bought a $100k Guaranteed Income Annuity about 8 years ago. We know now that annuities are not the best investment tool. We are both going to retire within the next 6months and expect to start taking distributions from this annuity. My question is should get out of this annuity all together and invest the money ourselves. The surrender fee isn’t a lot in comparison to the 2% fee they charge every year for the Death Benefit and the Guaranteed Income Benefit. We know this is basically an insurance policy but $3k fee a year seems hefty. This annuity is only a small portion of our nest egg.
Terry Says
A lot depends on the specifics of the annuity you purchased. There may also be tax consequences, in addition to surrender fees. So I’m not going to guess. I’m going to send you directly to my own annuity expert — Jeffrey Oster at Raymond James. I’ve been working with him for years, and he is very gracious about reviewing existing investments. And you can definitely trust him and any advice ehe gives. He is not out to make a buck at your expense. You can reach him at 415-486-7117.
