Annuity Tips & Warnings


The annuity world can be a scary place to be, there are lots of big decisions to make about some very large amounts of money. When considering your annuity plans the best advice we can give you is to shop around and learn as much as you can in advance to be able to make an informed decision.

Here are some other top tips and warnings to consider when you are looking for the best annuity deals;

  • It is a good idea to ask the experts about the funds performance if you are thinking about getting a variable annuity connected with a mutual fund; this is recommended with mutual funds too.
  • It has been proven in research and studies that a variable annuity makes sense for people with a longer life expectancy or time frame, it has been suggested that it takes five to fifteen years before the tax benefits outweigh the higher fees offered with variable annuities.
  • One thing you can try is to ask the company for a ‘free trial’ period, this is a chance for you to assess the communication and the record keeping of the company so you can decide if their service is as 1211_pound_sterlinggood as they state.
  • You may want to consider a company that offer you the chance to own an annuity for 10 days, this is great as it means if you are unhappy with the service you will have all your money returned without surrendering any charges.
  • It may be wise to speak to an annuity expert about inheritance tax and sometimes this can be a disadvantage to your annuities. They will explain to you how the growth of an annuity can become a fully taxable income and how you will find some stepped up costs from investors.
  • It is highly recommended that you get advice from a professional finance planner before choosing your annuity as independent ratings on annuities are very hard to find.

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