Truth 5. Annuity fees
"Beware of little expenses. A small leak will sink a great ship."
—Benjamin Franklin
As with any investment, it is not important what you earn, but rather what you keep. A major concern with annuities as an investment, particularly variable annuities, is the myriad of fees that can eat away at the value of your investment. An unfortunate aspect of annuity fees is that the cost of many of them may not be apparent to you.
Commissions or sales charges
Many annuities trumpet the fact that you may not be required to pay a sales charge when you first buy an annuity. Salespeople will tell you that the insurance company pays them, and that all the money you use to buy the annuity is working right away for your benefit. The truth ...
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