Annuity Factors for Consideration

August 19th, 2010
Fees: Determine whether the yearly fees imposed on a considered annuity plan are worth the benefits you may receive; and find out if the plan puts “surrender fees” into effect if you want to make a premature withdrawal. A wealth management firm in Fort Worth TX can help you consider these options.
Return Rates: Make sure that the rate of return promised by the insurance company selling the annuity is the actual rate that you will receive. Confirm the time period during which that rate will apply. Occasionally, the guaranteed fixed annuity rate decreases after the introductory period. Double-check the long-term financial qualifications of the insurer, since it has promised to pay you benefits over the course of many years.

Tax Advantages: Consider this: you will have to pay income taxes on payouts your receive from your Fort Worth annuity program. You will be forced to pay a tax penalty if you withdraw money before you reach the age of 59 1/2.

Inflation: The amount of income provided by an annuity may decrease in the face of adverse inflation. You and your financial advisor in Fort Worth can decide to take part in an inflation protection program.

Contract Terms: Consult a Fort Worth financial advisor before you obtain an annuity contract. These contracts can be extremely complicated. Also be aware of advice to switch to a new annuity plan, however. High surrender charges could apply if you change plans before the original surrender period has run its course.

For more information, please contact our Fort Worth wealth management firm.

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