Surrender Charge
It might make sense to exit an annuity early by either paying a surrender charge or, even better for most investors, do a 1035 tax-deferred exchange to a stronger annuity, if the company you're with is on shaky financial ground. Visit Weiss Research at www.weissratings.com and get your annuity company's financial stability rating. If it doesn't get a C+ or better, consider either a 1035 exchange or paying the surrender charge, if an annuity no longer fits your investment objectives.
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