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Why Should I Worry About Surrender Charges in Annuities?

Jerry Rogers

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 that calls for a 10 year surrender schedule?  Consider the following:

  • Stop and think how quickly the last 10 years went by. I cannot believe I have been married over 3 decades!
  • A 10 year surrender schedule allows the insurance company to offer sensible returns in good market years and zero losses in down market years. Now I remember why I am a “former” stock jockey.
  • With the incredible benefit mentioned in #2 – now I can actually see what my net minimum balance is at any given point in time.  With a stock or mutual fund portfolio I would have to stare at the TV screen and try to figure out if this in a “good” time to take money out of my account.
  • Most contracts allow you to take 10% of your account value out each year without a surrender charge.

Should you worry about Surrender Charges? You should not make this type of commitment with money that you expect to use for other purposes in less than the 10 year time frame.  A competent agent can walk you through a suitability process to see if this concept is a good fit for you and your family.

To learn more from this annuity professional, simply click here (Jerry Rogers).

About the Author:

Jerry Rogers is President of Rogers Tax Advisory Group located in Charleston, SC. In his role of Personal Financial Trainer, has been assisting families for over 28 years.  Mr. Rogers started his career as an Account Executive at a full service investment brokerage firm and later moved into advising individuals as a Personal Financial Officer at a local savings bank.  He started his own independent Investment Advisory firm in 1988.  Jerry has published articles on retirement investing in the Charleston Post and Courier and has been featured in the Dow Jones Investment Advisor magazine.  Over 50,000 people have heard him on “WTMZ’s Senior Moment”.

If you are feeling overwhelmed by the issues facing most families: finding the best way to put your hard earned money to work, understanding how much you need to save for retirement, paying for college education, the best way to declare for Social Security benefits, how to properly fund your 401k, etc.,etc.,etc. I CAN HELP! Call me at (843) 552-5444 or send an email to:


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