401K Versus Annuities: Where Should My Money Go?

Beware: annuities are not investment; they are really just a variant on life insurance. We at Evans Law Firm see a trend developing, in which more often than not, clients are sold annuities under the pretense that annuities are great investments. In some instances, individuals are persuaded to swap their 401K for an annuity, displacing their money into an insurance company’s hands and an insurance agent’s pocket.

While annuities may seem a harmless way to put money off to the side, they are extremely dangerous and complex contracts. Oftentimes individuals are sold on annuities because of the “tax-free” benefit, but it is important to understand that there are multiple “tax-free” options out there that do not include buying annuities. Financial advisors agree that it is important to search all your options and weigh all the drawbacks of each financial investment you make, and we at Evans Law Firm agree with that. Too often we come across clients who were sold annuities under the assumption that it was simply the best and safest thing to do. But often the reality is far different. For one thing, as the annuitant ages, premiums increase and sometimes the benefits they were hoping for long-term are never paid out.

Be wary of any investment. And be especially wary of annuities. Understand what annuities are and do not be afraid to consult multiple experts before committing to buy a policy. Here at Evans Law Firm, we will look over your policy free of charge and are extremely versed in the legal intricacies of these types of policies. In the end, we have one tip: protect your money in a way that makes sense for you.

Contact Us

If you or a loved one has potential problems with an annuity in Marin County or in any California county, contact the Evans Law Firm elder attorneys at (415) 441-8669, or by email at info@evanslaw.com. Our attorneys have experience with complex financial contracts and large insurance companies. We can help guide your case through a jury trial or toward an equitable settlement. We handle cases involving whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.