January 8, 2022 1 min read

#14 Annuity Surrender Fees are Not a Big Deal

Episode #14

Bryan Anderson, founder of Annuity Straight Talk, speaks with Ashok Ramji, a financial consultant with TOP Planning LLC, an independent asset protection and retirement income planning firm serving retirees and pre-retirees alike. In this episode, they dive into the topic of surrender fees.

Bryan and Ashok weigh in on why fixed deferred annuity contracts have surrender fees and why the surrender schedule is important. They review one of Bryan’s newsletters, diving into the two main reasons why surrender fees are not a big deal.

Ashok then shares what a 10-year surrender fee schedule looks like. He and Bryan look into a couple of case studies, illustrating the pros and cons of surrender fees and offering some solutions. They end the show with the advantages of working with Annuity Straight Talk.

What You’ll Learn in This Episode:

[02:25] How surrender fees and annuities work compared to other investments
[05:35] How much banks charge compared to insurance companies
[08:00] When you have the right protection component, you get more over time
[10:28] Ashok’s clarification about Bryan’s newsletter on surrender fees
[16:42] You’ll have the ability to reposition of your money every year
[20:35] Most index annuities have growth in the first few years that exceeds the surrender fee
[28:22] Ashok’s observations about the case study
[31:02] People can maximize the withdrawal from a potential contract and get a substantial amount of money out before the surrender period ends
[34:45] If you get a 4 or 5% yield, you’ll pull a majority of the money out and still have a big remainder left

Key quotes:

“Surrender fees are the stick used to beat annuities.” ~Bryan
“I love when consumers have choices.” ~Ashok
“A good plan has got long term perspective.” ~Bryan
“Surrender fees—they’re important to consider.” ~Ashok

Resources:

Call Annuity Straight Talk at 800-438-5121 or schedule a call at AnnuityStraightTalk.com

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