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The Pros and Cons of Annuities

Posted By Lineweaver Financial Group
November 08, 2021 Category: Commentary, Finance, Portfolio, Economy, Pros And Cons

Do you have, or are you considering an annuity? Is it right for you and your financial goals? Annuities are popular for a variety of reasons, and it seems like they’re everywhere. But are they always a good investment?    First, it’s important to note that every strategy has its place. There are many solutions that may only work for a specific set of people – including annuities. Many people appreciate the relative financial safety they may offer.    But, there are also many drawbacks to annuities. For example, the lack of liquidity - once clients place money in an annuity, they’re often limited as to how and when they can get it out. At the very least, they’ll likely have a surrender charge. Some have even more limitations – like how much they can withdraw each year! Often times, these products aren’t explained well, and by the time an issue arises and you need cash, the person who sold them to you is long gone.    So, there can be many challenges annuities offer, but how would investors know? The answer is that annuity companies have to report all the ins and outs of their various annuities to a 3rd party reporting service. We have access to those tools and can offer you a no obligation annuity intelligence report. It will reveal things like how much the surrender charge is, hidden fees and expenses, all the terms of the contract that