Brad Tinnon

Brad Tinnon

Articles of Interest – $55,000 Annuity Penalty

Throughout the week, I run across articles written by other people that may be of interest to you. This week I am sharing an article from Mike Piper of Oblivious Investor on whether it’s a good idea to add a guaranteed withdrawal rider to an annuity.

I’m sharing this article because over the next two Wednesday’s my weekly financial planning blog will be on the topic of annuities. My inspiration for this is a client who has a very undesirable annuity that was sold to them by another advisor. She’s had this annuity for over 10 years and it literally has a $55,000 surrender penalty if she were to get out of the annuity. And the sad part is that this surrender penalty NEVER goes away.

The article from Mike Piper is titled Are Guaranteed Living Withdrawal Benefit (GLWB) Riders A Good Idea.

Mike talks about how complex annuities are and how they can often times be detrimental for clients. Many of you who have followed my blog know that I am generally not a fan of annuities simply because of how complex they are and how they are structured to the benefit of the company selling them rather than the benefit of the investor.

Please feel free to share any comments, questions, or experiences you have below. 

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Brad E.S. Tinnon
CERTIFIED FINANCIAL PLANNER™
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