Page 158 - Ready Set Retire

Stephen J. Kelley

• They provide superior, guaranteed, lifetime income
without giving up control of your money.

• You pay no fees or commissions out of your money
(unless you add certain benefits, and then you pay a
SMALL, clearly stated fee with a clear understanding
of the benefits received).

• They have excellent liquidity: you can always have
access up to 10% (or sometimes more) of your money
per year with ZERO surrender charges. If you need
more, others provide up to 100% of your principal
with no penalties to principal; only interest. If you die,
end up in a nursing home or become terminally ill, the
whole amount is paid out without penalty.

• They may provide tax advantages.
Okay, now back to our point about surrender periods. Unless
fees and surrender charges are buying you something they are
not good. With a hybrid annuity, the surrender charge is buying
you something. It’s buying safety, market participation without
the risk, minimal or no fees, lifetime income without giving up
control of your money and potential tax advantages. Except
for the last item, none of these is available with the VA, and
yet you still have surrender charges and those exorbitant fees.
So that’s why we don’t like them.

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