Monday, February 05, 2007
What's Hiding Under My Annuity?
Whatever type of annuity you are dealing with, I am sure you probably don't know everything about it. Now, that sounds like an obvious statement but let me go on.
There are statements behind the statements when it comes to annuities. For example, annuities in general (not all of them) allow a consumer to take out 10% a year. At first glance that sounds like a great proposition. Well, what they don't tell you, is most of the time you can only take ONE withdrawal per year. Yes, one withdrawal up to 10% but no more than 1 withdrawal. Therefore, if you take one withdrawal for 2% and try to get 8% more later that year, you can't do so without being penalized.
This is ONE example of many. There are so many more examples like that.
Many of us as consumers are guilty of buying things we don't know enough about. The same goes true for the things we invest in. Well, the problem with annuities are that they are long term commitments. Any annuity requires some type of time commitment. So to not know what you're getting into is suicide. Many people have horror stories about their annuities. I guarantee most of that is not necessarily because they bought a BAD annuity, but an annuity that was BAD for them.
Bottom line is, you gotta know what's hiding underneath that variable annuity, fixed annuity, or whatever annuity it is you have. If you don't, you will be hurting yourself for the future....believe it. I see it all the time. Take time to understand what it is you're getting into and it will pay off for the years to come.
Ignorance AIN'T Bliss...
Tony Bahu
AnnuityMD.com
There are statements behind the statements when it comes to annuities. For example, annuities in general (not all of them) allow a consumer to take out 10% a year. At first glance that sounds like a great proposition. Well, what they don't tell you, is most of the time you can only take ONE withdrawal per year. Yes, one withdrawal up to 10% but no more than 1 withdrawal. Therefore, if you take one withdrawal for 2% and try to get 8% more later that year, you can't do so without being penalized.
This is ONE example of many. There are so many more examples like that.
Many of us as consumers are guilty of buying things we don't know enough about. The same goes true for the things we invest in. Well, the problem with annuities are that they are long term commitments. Any annuity requires some type of time commitment. So to not know what you're getting into is suicide. Many people have horror stories about their annuities. I guarantee most of that is not necessarily because they bought a BAD annuity, but an annuity that was BAD for them.
Bottom line is, you gotta know what's hiding underneath that variable annuity, fixed annuity, or whatever annuity it is you have. If you don't, you will be hurting yourself for the future....believe it. I see it all the time. Take time to understand what it is you're getting into and it will pay off for the years to come.
Ignorance AIN'T Bliss...
Tony Bahu
AnnuityMD.com
