Will I lose access to my money?
Yes, an annuity can limit access. Some charge for early withdrawals. Turning money into lifetime payments generally means giving up control.
The fair worry
A big bill won't wait for a contract to end. I want you to see what getting money out early can cost.
The answer
Here's a made-up example, not a real client.
Someone puts $300,000 in a contract with an 8% surrender charge. The first 10% comes out free each year.
They need $50,000. The first $30,000 is free. The other $20,000 costs 8%, which is $1,600. Terms differ by contract.
The downside
That example covers only the surrender charge. Other contract rules and taxes can affect what you receive.
At your consultation
That's why your free consultation puts income needs beside money you want within reach. Your retirement advisor will show both using YOUR numbers before you decide on anything.
More questions on this topic
- How long is my money tied up?Often 5 to 10 years, sometimes longer. Even then, you can generally take some out each year, and shorter terms may be available.
- What happens to the money when I die?The contract and payment choice decide. Some keep paying a spouse. Others may pay little or nothing after you die.
- How much should I put in?There's no one right amount, and it doesn't have to be all or nothing.