Truth 23. Shorter surrender annuities
"In theory, there is no difference between theory and practice. In practice there is."
One of the greatest drawbacks to the purchase of any annuity is the surrender fee. Most annuities have surrender fees that can extend anywhere from seven to ten years or more. If you need to have access to the money that you invested in the annuity during the surrender period, you pay a significant penalty fee that can drastically eat into the value of your investment.
Generally, the surrender fee is a percentage of the money that you withdraw over and above any amount that you are permitted to withdraw without a penalty. Usually, the amount that you can withdraw penalty-free is 10% of the value of your annuity; ...