Annuities can play an important role in the overall strategy of an individual or family.
The problem is that often the fees are high, even “very high”, with less than optimal sub account investments. Our team will analyze your annuity for you and reveal the fees. We can “rescue” your annuity with a 1035 transfer – and dramatically reduce the fees as well as populate the “sub-accounts” with better performing funds. We have never sold an annuity to a client – it would be an extremely rare situation that would include an annuity as part of the solution.
When a client comes to us, we formulate their overall strategy that takes into their entire situation – all moving parts including any existing annuities. Sometimes our team’s recommendation is to keep the annuity in place treating it essentially as a “bond” in their portfolio. Sometimes you hold an older annuity with a guaranteed percentage payout (e.g. 4%) which in today’s low interest environment is awesome.
Other times we recommend liquidation. A part of the liquidation decision is if the annuity has passed its surrender penalty time period. The third alternative is a 1035 transfer where it becomes a higher performing part of their portfolio due to more diversification and less fees.
In a rare circumstance, we might provide an annuity but it would a version designed specifically for a registered investment advisor with no commissions and more transparency. Schedule a meeting to learn more.