Category: Annuities

ATTORNEY NEWSLETTER The Trouble With Annuity Replacements Churning Annuities In shifting economic climates, insurance agents often recommend replacement of old annuity or whole or universal life insurance policies with promises of better, newer products. For most policyholders, especially seniors, replacements are inappropriate because they are expensive, can trigger tax liabilities, […]

ATTORNEY NEWSLETTER Broker Pushed More Expensive Variable Annuities L-Share and B-Share Variable Annuities Not all variable annuities are the same. Carriers offer B-share contracts with long surrender charge periods and L-share policies with shorter surrender periods but higher fees and commissions.  Both types of variable annuities may be inappropriate for […]

ATTORNEY NEWSLETTER How You Can Lose Money On Annuities  Investors, especially seniors, can get into real trouble investing in annuities. Annuities are expensive, complex long-term insurance products that tie up your money for years.  If you need your money for an emergency or increased living expenses, you’ll pay a penalty […]

ATTORNEY NEWSLETTER Beware Fixed Index Annuities Americans pump billions into complex fixed indexed annuities every year. Insurance agents push the annuities as a safe bet in volatile markets – they’ll tell you the policy offers the upside of market increases (the “indexed” part) with downside protection (the “fixed” part).  Advertised […]

ATTORNEY NEWSLETTER Be Wary of Annuities in Retirement Accounts 401(k)s and IRAs Are Already Tax-Deferred Tax deferral is the key to successful retirement savings. 401(k)s, IRAs, SEPs and the like offer tax deferral and retirement savings grow tax-free until it’s time to withdraw without penalty after age 59 ½. Earlier […]

ATTORNEY NEWSLETTER Be Wary of Variable Annuities Don’t Be Blindsided In Your Search For Higher Returns In our current low-interest rate environment, insurance agents and retirement planners push variable annuities as a way to get more bang for your buck when it comes to retirement savings. Be very careful.  These […]

ATTORNEY NEWSLETTER Be Wary of Annuities Don’t Be Blindsided In Your Search For Higher Returns Banks sell a lot of annuities. Bank customers grumble at low interest rates on bank deposits and CDs and banks want to keep their customers happy.  So many bank officers and service reps steer disappointed […]

ATTORNEY NEWSLETTER Be Wary of Annuities Commissions, Fees and Surrender Charges Drain Your Savings One commentator recently summed it all up when it comes to annuities: “Annuity companies and annuity peddlers are making boatloads of money from you.”[1]  It’s the truth.  Annuities are among the highest commission financial products out […]

ATTORNEY NEWSLETTER Be Wary of Annuities in IRA Accounts Tax deferral is the key to successful retirement savings. IRAs, 401(k)s, SEPs and the like offer deferral and savers can see their retirement savings grow tax-free until it’s time to withdraw without penalty after age 59 ½. Annuity salesmen often counsel […]

ATTORNEY NEWSLETTER Inappropriate Annuity Replacements Churning Annuities Be careful whenever an insurance agent recommends you replace an existing annuity or whole or universal life insurance policy with a new one. Replacements of existing policies result in commissions payable for the new policy, surrender charges for the old policy and a […]