- fund choices
- surrender charges
- financial strength of the issuing company.
Compare the variable annuity fund choices available as well as their performance over time.
With a variable annuity, one should compare like funds and sub-accounts, for example large-cap growth versus other large-cap growth funds. Most variable annuities allow the account owner to withdraw either their interest or their interest earnings up to 15 percent per year without penalty.
However, in doing so, most variable annuities also have a surrender charge for making an early withdrawal above these limits. Investors must compare variable annuity surrender charges, as they can differ significantly from one annuity to another and one company to another.
Some companies have surrender charges for up to seven years, while others may be as long as 10 or more years.
These types of annuities differ still from indexed annuities or hybrid annuities, both of which we’ll discuss in my next helpful letter to you – the conscientious senior with the rest of their life and retirement in front of them.
If you’re ready to start getting your estate in order and secure your assets for the “worst-case” scenario, please give our office a call at 800-310-3100. Your first consultation is absolutely free. We’ll let you know what steps you need to take, right now, to protect yourself and your family. Call now.
Till next time,
Elder Law Attorney at Law Elder Law, LLP.
Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future. Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care. Appointments available in Chicago, Aurora, Oak Brook, Schaumburg, and Joliet. Call 800-310-3100 for your free consultation now!
By Rick Law, Elder Care Attorney in IL
In contrast to fixed annuities, variable annuities provide the opportunity for market appreciation through a variety of investment options, with tax-deferred accumulation as well as future income.
Factors to consider when shopping for variable annuities are: