No-Load Annuity
Categories: Retirement
See: No Fee Mortgage. See: No Transaction Fee Mutual Fund. See: No Load.
Load is commission, more or less. And does anyone out there think Wall Street and/or midwestern insurance companies do anything that’s truly for free? Yeah, we didn’t think so.
So an annuity is no different. You pay. You may not pay a fee up front. But instead of getting, like, 7.872% returns on that annuity for the 27 years it’s relevant, you get 7.653%. You’re paying a fee, but on the back end...and usually, that “fee” buried in the management fee is vastly larger than had you simply paid a small fee up front to transact and then negotiated hard on rates or other elements that have longer-term value.
Too many people don’t read the fine print or do the math. But hey. That’s why we’re here.