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Annuity Reviews

Considering an annuity? Kerr Wealth Management provides annuity review services locally in Fresno, CA  Annuity contracts are long complex insurance contracts, written in legalese insurance jargon. Consumers are faced with a vast array of investment options that can lead to overwhelming frustration. The financial advisors at Kerr Wealth can help you understand which annuity is right for you and help you determine if an alternative is necesssary.

Annuity Considerations:


Will I need the money before the surrender period is up? If not, then an annuity could be a suitable fixed income asset.

What are the surrender fees?

How much does my income rider cost?

What are the additional annuity contract fees?

Are the investment options low cost and diversified?

Can my annuity keep up with inflation?

Does my annuity compound daily or pay simple interest?

The Truth About Annuities

Tax Deferred - While an annuity inside your IRA does allow for tax deferral, it is not the annuity that makes it tax deferred, it is the IRA itself. A traditional IRA is already tax deferred and can be funded through a traditional brokerage, mutual fund account or a custodian with a financial advisor. Remember, Traditional IRA's were created by the IRS and are always tax deferred if you are not already funding a 401(k). An annuity is just the platform for which you access the IRA.

To get to the IRA you have to pay the insurance company fees for the insurance policy, investment fees, fund fees and hefty commissions to an insurance agent. 


Tax Free  - Nothing is tax-free. You will pay taxes on your annuity IRA on a last in first out basis (LIFO).


You will not receive dividends or interest income from your investment allocation. Many annuity contracts just mirror the ups and downs of a fund or index without paying dividends or interest coupons from bonds. However, you can get a guarantee from the insurance company which may be appealing to someone wanting long term principal protection or fixed income. 


An annuity is a life insurance contract.The second part of the contract is an investment component and it's always a good idea to look at all of your options before making a decision.


Kerr Wealth Management can help you evaluate your annuity or an annuity you are considering. 

A conflict exists when you purchase an annuity through us as our affiliate will be compensated for the recommendation. In general fixed index annuities are free of cost if you hold the contract to maturity. If you cancel the contract before maturity there is a surrender charge designed to pay back the insurance company for the commission it paid for the product recommendation. 

Investors should compare cap rates, participation rates, income riders and insurance company rating before purchasing an annuity.  

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