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Surrender Charges

Fixed Index Annuity Basics

Mark Goldfinger

Mark Goldfinger | March 27, 2015 | , , , ,

When my clients ask me to list the most important ingredients required when looking to create and maintain a stress-free retirement plan, I explain to them that there are three basic financial requirements: a guaranteed income which they cannot outlive; little or no risk of losing their money/savings, and the ability to grow their money through participation in a growing stock market and NOT a receding stock market. I then inform them that there are financial tools that will help meet these three requirements, and...

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The Top 5 Pitfalls of Indexed Annuities and How to Avoid Them

Keith L. Collins

Keith L. Collins | February 11, 2014 | , , , ,

With a multitude of factors involved, indexed-annuity products can be rather complex for many people. While many specialists offer great advice, they rarely tell them about the pitfalls they can face with indexed-annuity products. That is why I intend to educate you with information about the top 5 pitfalls you may face when selecting indexed-annuity products. 1 – Investing in a Single Index As the name suggests, indexed annuity products allow you to link your account to a particular index. More often than not, many...

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A Simple Guide to the Top 10 Index Annuity Product Factors

Keith L. Collins

Keith L. Collins | February 3, 2014 | , , ,

Offering long term benefits that ensure you have a steady flow of income, indexed annuity products can be the difference, for some, between a relaxing and a stressful life. With a multitude of indexed annuity products available today, we understand that it can be difficult making the right choice. With plenty of numbers, calculations and clauses, selecting a product is rarely a simple task. However, we hope to make it simpler by offering a breakdown of the top 10 factors existent in almost any indexed...

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Do Index Annuities Have High Surrender Fees?

Keith L. Collins

Keith L. Collins | December 30, 2013 | , ,

Surrender fees for Fixed and Fixed Index Annuities can be very high and should be avoided at all costs; especially with your retirement funds. The surrender fees could be as high as 18% or more for some annuities. This would put a real dent in your nest egg if you have to pay it in the event you ever had to liquidate an annuity. Fortunately, there is a very easy way to not have to worry about surrender fees… don’t use annuities for short term...

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Annuity Surrender Fees: What Is A Market Value Adjustment?

Jason Soloman

Jason Soloman | December 6, 2013 | , , , , ,

Some annuities, specifically indexed annuities, have a surrender charge that ranges from 3-15 years.  So if you are not terminally ill, require nursing care for more than 90 days, and want to withdraw more than 10% from your annuity there will probably be some monetary consequences to go along with your withdraw.  Some surrender charges are defined and won’t change; others fluctuate via their Market Value Adjustment.  So what is a Market Value Adjustment (MVA)?  Essentially a Market Value Adjustment is the insurance company’s way...

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Why Should I Worry About Surrender Charges in Annuities?

Jerry Rogers

Jerry Rogers | November 19, 2013 | , ,

As a former stock jockey I remember well the concept of long term investing. Our client conversations always included the 10 plus years timeframe that we thought was appropriate if someone was considering exposing their money to the volatility of the stock market. Since converting to the Safe and Predictable world of Fixed Annuities, I find that clients are not used to the concept of Surrender Charges and this topic often comes up for discussion.  Should you be concerned when you are presented a concept...

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Annuity Surrender Charges Explained

John L. Olsen

John L. Olsen | November 5, 2013 | , , , ,

Surrender charges are imposed by most, but not all, Deferred Annuities (Immediate Annuities generally impose no surrender charges because most Immediate Annuities cannot be surrendered for cash). It is vitally important that prospective buyers fully understand the impact of these charges on the Deferred Annuity’s cash surrender value, when they’re imposed, and when they’re waived. Some critics of annuities assert that surrender charges are wholly unattractive, that they always work to the buyer’s disadvantage. This is neither accurate nor fair. Let’s look, now, at how...

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Can I Buy Annuities With No Fees or Surrender Charges?

Stan The Annuity Man

Stan The Annuity Man | July 18, 2013 | , , , , , , , , , ,

Question: Can I buy annuities with no fees or surrender charges? Are there no load annuities like no load mutual funds?  Ron in Roanoke, Virginia. Answer: Phenomenal question Ron!  The annuity industry is very late to the party when it comes to “no load” type offerings that are common in the mutual fund industry.  No load can mean a few things.  It can refer to no fees for buying a strategy, no fees to keep the strategy, and no fees to sell the strategy.  Let’s...

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