Keyword Analysis & Research: annuity

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Frequently Asked Questions

Why are annuities usually considered a bad investment?

Fixed rate annuities create an even bigger risk, because of increased cost of living and inflation . If you lock in a guaranteed rate of return on your annuity, you may miss out on increased interest rates and jeopardize your chances of a maximum return.

How do you make money with annuities?

Another way companies make money on annuity contracts is through surrender charges. While not all annuities carry these charges, many will charge you a fee if you want to get out of your annuity contract before a specified period of time. Surrender charges typically decline from year to year, but start out high and can last 10 years or longer.

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