They can be if you don’t choice the right annuity. If you pick the right annuity you may have no charges or a very small annual charge with it. Typically, a fee may be associated with a rider or an enhanced benefit. A typical fee may be an annual 40 basis point charge. One basis point is 1/100th of 1%. Almost all deferred annuities have a surrender charge. Surrender charges generally decrease to zero during the lifetime of the annuity contract. A surrender charge offsets the insurers cost if you prematurely surrender you contract.

In our opinion, annuities are excellent financial vehicles to use preparing for and during retirement. Other financial vehicles may or may not give you the benefits, liquidity and guarantees an annuity can. For example, mutual funds are expensive and have no guarantee’s except with the guarantee that the fund expenses and manager will be paid at your expense. You pay for all the funds cost (along with all the other investors that own that mutual fund). You take all the risk. Owning a individual stock can decrease in value instantly and is a risky strategy if your depending on this type of vehicle for financial support in retirement. With an annuity, the insurer bears all the financial risk.

We at www.RetirementWealth4you.com strive to provide you the consumer with the proper annuity with the lowest fees. We take into your consideration your time horizon, financial goals, financial liquidity, and whether it is suitable for you.
A Word Of Caution: If you pick the wrong annuity it can cost you money. Whether you use our service or another provider please know what type of annuity you’re getting, the benefits you receive and what the vehicle will do for you. Also know what fees if any, you’re paying for on an annual basis.

A Word Of Caution: Be very careful with variable annuities. Why? They can be more expensive. Are you getting enough guarantees in the contract? Is your principal at risk at anytime during the contract? Is your broker selling only one type of annuity to you, if so, why? You should be able to get more benefits, more guarantee’s, less risk, lower fee’s with a fixed or deferred annuity. We hope the broker is not selling you a variable annuity just because of the commission they receive. Ask the broker why they are recommending this product and does he have any other annuities to offer? You can consider exchanging your variable annuity or any other annuity for a lower fee annuity with better benefits to you. Only exchange your annuity if you will receive better benefits and it makes economic sense. Don’t exchange your annuity if you will lose money (contract value) on the exchange and you don’t receive a great economic value after the exchange.

A Word Of Caution: Don’t buy an annuity from anyone who sell’s one product line. This would include a captive insurance agency or agent, a broker who just has one product line for an annuity. Brokers may be compensated higher commissions for picking only certain products. You need to know all of your choices and options. www.RetirementWealth4you.com uses several independent channel lines to offer our clients. We are mandated to use what is in your best interest.