Annuity Clues

You should be suspicious of the person who wants to sell you an annuity and:

☹ The annuity has surrender charges for longer than six years.

☹ You are likely to need principal back from the annuity while surrender charges will apply.

☹ You are being told that it will help you protect assets under Medicaid or Medi-Cal nursing home rules.

☹ The salesperson will not tell you how much he or she will earn from selling you the annuity.

☹ The salesperson will earn a commission greater than four percent.

☹ The annuity will be purchased and held within an IRA or other tax-deferred account.

☹ The annuity will be purchased with money that you withdraw from an IRA or other tax-deferred account.

☹ You do not need to pay income taxes (with or without the annuity).

☹ You are being asked to convert a high percentage of your assets into deferred annuities.

☹ The annuity is a variable annuity, and you are unable to leave the principal untouched for 15 or more years.

☹ There is no waiver of surrender charges for nursing home residents.

Call us if you have any concerns about annuities you have purchased or are being offered.


John B. Payne, Attorney
Garrison LawHouse, PC
Dearborn, Michigan 313.563.4900
Pittsburgh, Pennsylvania 800.220.7200
©2010 John B. Payne, Attorney

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