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Q. My broker is trying to talk me out of purchasing a fixed annuity. He told me that they have hidden fees. Is this true?

Posted by: Tina F.
A. No. There are no sales fees, no contract fees, no expense charges, no annual fees, or management fees of any kind. 100% of your investment goes to work for you immediately. Some annuities guarantee the interest rate from the day it is received until the end of the guaranteed period. Very simply, the quoted rate is the rate you will receive. The only charges that may be incurred would be an early withdrawal penalty beyond any "free withdrawal" amount the annuity may allow. The free withdrawal policies and the early withdrawal penalties are clearly shown in the information sheet of each annuity. Any withdrawals made prior to 59.5 may be subject to a 10% penalty tax from the federal government.

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