gif (1280 bytes) Q. What fees are found in annuity contracts?
A. There are a variety of fees such as: Sales Commission Be sure to ask for details on any commissions you will be paying. What percentage is the commission? Anything above 3 – 5% should be unacceptable. Is the commission deducted as a front-end load? If so, your investment is directly reduced by the amount of the commission. A no-load annuity contract, or at least a low-load contract, is the best choice. Surrender Penalties Find out how much the surrender charges amounts charged for early withdrawals are. The typical charge is 7% for first-year withdrawals, 6% for the second year, and so on, with no charges after the seventh year. Charges that go beyond seven years, or that exceed the above amounts, should not be acceptable.
