Variable Annuity Rescue Plan
Want to rescue an over-priced, under-promised variable annuity?
Chances are, like so many investors, your traditional variable annuity may not be working hard enough for you. Many variable annuities (VAs) carry high fees, which could erode the principal and reduce growth potential. If you account for upfront sales commissions and limited fund choices, most VAs simply don’t perform as promised.
Today, you may be able to save more money by transferring those nonperforming VAs to a low-cost variable annuity or no-cost fixed index annuity through a non-taxable procedure called a “1035 exchange”. It’s fast, simple, and it may cost you nothing. However, before the exchange, you’ll want to see if your current annuity will assess any surrender charges. You’ll also want to evaluate the current annuity’s features to determine if you need these benefits or if you can use a more cost-effective solution.
Chances are you’re probably paying too much!
With exception for a few, nearly all variable annuity companies charge “mortality and expense” fees (M&E). This covers basic insurance guarantees such as the death benefit and a guaranteed lifetime payout option. These fees are calculated as a percentage of your annuity’s account value. So the more money you have invested and the more your annuity grows, the higher those fees will grow, too. Over time, these fees can cost more than the benefits that you or your heirs might receive.
It’s time to review what you have and see if you’re paying a fair price for what you’re getting.
A simple check up could save you thousands of dollars each year.
Americans still need to save more for retirement and rescuing an overpriced, under-promised variable annuity is one way to help.
So when was the last time you gave your variable annuity a check up?
According to Morningstar®, the average VA charges 1.35% a year in insurance fees. On a $100,000 annuity that adds up to $1,350 per year. If your VA performs well for the year, you could pay more!
The simple, low-cost solution to save more for retirement: Low cost or no load annuities.
When it comes to retirement, the more you accumulate, the more income you can generate. So if you’re committed to building long-term wealth, then you’re already maximizing contributions to traditional tax-deferred plans such as a 401(k), IRA and Roth IRA.
Why low cost or no load annuities? You can take back thousands!
If you already own a VA and exchange it for a low cost or no load annuity, you could take back thousands of dollars in unnecessary fees and put that money back into principal, where it belongs, to save more for retirement.
Contact us for a complementary Variable Annuity Rescue Plan analysis, or click here to contact us.
