How and When to Get Out of an Annuity Policy

Annuity policies are a relatively popular way to guarantee income in retirement. But do you know how and when to get out of an annuity policy if you find it’s not the best option for you? We dedicated this week’s episode of Grow Money Business to discussing the situations where it makes sense to start an annuity, when to hang on to one, and when you should think about getting out of your annuity.

 

Show Notes

[05:55] Forms of annuities –Grant starts the conversation by explaining some forms of annuities and how they work.

[12:15] Expenses – Grant explains why variable annuity accounts are more expensive than mutual funds.

[21:03] Control – Grant describes how you have less control over your cash once it’s handed over to an insurance company.

[27:21] Surrender charges – Grant shares some important considerations when you are in the surrender period of your annuity.

[32:54] Tax ramifications – Grant shares how tax ramifications are more complicated than surrendering the annuity policy.

 

Resources

Breaking Down Annuity Fees and Charges

smartasset.com/retirement/annuity-fees

 

Annuity Fees and Commissions

annuity.org/annuities/fees-and-commissions/

 

Annuity Policy Surrender Periods: Understand (and Avoid) Surrender Charges

thebalancemoney.com/annuity-surrender-period-charges-and-tips-to-pay-less-315092

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