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.
The fair worry
You may have heard your money gets tied up for years. I understand wanting the shortest term.
The answer
During that time, you can generally take out 5% to 10% each year with no charge. Above that, you may pay a surrender charge, a fee for taking out too much too soon.
That charge usually shrinks over time, then ends. The length depends on the contract.
State law usually gives you time to cancel for a full refund, often 10 days. The first page of the contract states the window.
The downside
If you turn the contract into lifetime payments, you generally can't take the rest as a lump sum later.
At your consultation
Your free Zoom consultation puts that time frame beside YOUR need for access. Your retirement advisor will show what you'd still have within reach.
More questions on this topic
- 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.
- Can one annuity do growth and income?Yes. Some annuities let your money grow and provide income.