Annuities Tying Up Money

Q: I read a column you wrote in the Senior Journal on fixed indexed annuity retirement. I was offered of the funds through OM Financial Life Insurance Company. It is called Spectrum Rewards Choice 9.

Is this kind of funds you were writing about? Your description seemed to fit this fund. I was concerned about... the long period of time they tied up your money and the probable rate of return of 6-7%. Which doesn't sound too bad, but early surrender charges are high. And it sounded like the agent and the company would get a fairly high of return for themselves.

A friend told me to check out the web and the first thing I found was your article. Should I avoid this kind of thing?

A: I am not a big fan of any annuities because of the high surrender fees they charge. In today’s market, there are too many other alternatives that don’t force you to give up control over your money. Here’s a report that will help you better understand the financial services industry:

Financial Self Defense

Let me know if I can be of further help.

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