Fixed deferred annuities and fixed immediate annuities do not show fees separately.
For fixed deferred annuities, fees are included in the interest rate.
For immediate annuities, if you like the monthly payment provided then calculate the rate of return based on how many years you think you will live.
For variable annuities, there are the expense ratios and mortality and expense fees stated.
Rule #5: Remember that fees, and this goes for mutual funds and ETF's and just about everything else, are based on asset values not on profits. This is a big complaint of mine and the reason I started this blog on financial planning.
If the fees are 2% and you earn 4% on your money then the company took 50% of your profits. Yikes! It is so insidious. It is one thing if you are getting that much value from the advisor who sells you a product but they even earn money when your asset value goes down.
Fees also may be charged for additional riders (like guaranteed living benefits) and some companies increase the fees based on when you exercise an optional rider. Read the full contract for fixed annuities and the prospectus if it is a variable annuity.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.