Annuity Review Services

Annuity Review Services 

Considering an annuity or concerned about an annuity you purchased?

Blosser Harrison's Financial Advising team offer annuity review services locally in Fresno, CA and throughout Los Angeles, Long Beach, Clovis, Modesto and California. Annuity contracts are long complex insurance contracts, written in legalese insurance jargon. As a consumer you are faced with a vast array of investment options that can lead to overwhelming frustration. Many investors gravitate towards annuities because they were either sold an annuity or believe annuities offer guaranteed returns without risk. The truth, annuities are very complicated insurance contracts designed to pay the contract owner at a later date through a series of payments or a lump sum arrangement. They are insurance contracts, not investments. 

Many annuities have high costs, hidden costs, restrictions and other risks that can potentially damage your expected returns. As conservative as annuities appear, they may not be the best place for you to invest your money. 

Another common issue is how annuities are advertised as tax free or tax deferred. This can be misleading because IRA's are already tax deferred, you do not need a product to get tax deferral.

Questions to consider:

  • What are the fees on my annuity contract?
  • How much commission did my annuity agent make or will they make?
  • How much of the commission comes out of my principal?
  • How long does it take me to make my money back after commissions are paid?
  • What are the surrender fees?
  • How much does my income rider cost?
  • What are the additional annuity contract fees?
  • Does my agent understand how the fees work?
  • 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 may not be receiving 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.
  • The Fees, The Fees, The Fees!
  • An annuity is a life insurance contract, not a real investment. The second part of the contract is an investment component that could end up being a very expensive investment compared to other pure investment choices like stocks, mutual funds, CD's, bonds or ETF's.

Kerr Wealth Management does not sell annuity products. Instead, we evaluate the annuity you are considering, interpret the contract as it relates to your financial situation, identify the various fees and determine if it's an appropriate investment given your financial objectives. If appropriate, we can help you transition to a more suitable investment strategy.

What We Can Do..

Verify if your annuity is suitable for you.

Help you understand the fees and commissions you are paying.

Create a cost analysis of what you have vs. what you could have.

Help you understand your earnings.

Help you understand the surrender charges.

Help you understand annuity load charges.

Confirm if your annuity will meet your investment goals.

What We Don't Do..

We do not sell annuities.

We do not recommend annuities.

We do not refer clients to people who sell annuities.

Why You Should Consider an Annuity Review..

You could be paying more than you realize.

You may not be receiving dividends or interest.

You may only be earning simple annual interest and compounding interest like a stock portfolio could provide.

You may have long surrender periods.

You may not understand what you actually have.

You may not realize that annuities are truly an expensive life insurance policy designed for income payments and not investing.

You could be getting a better rate of return with a stock, bond or blended investment portfolio.

The agent who sold you your annuity or the agent selling you an annuity without full disclosure may not be acting in your best interest.

Request an Annuity Review

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