Pinched

Like many indexed annuities, this Allianz product comes with a very long surrender charge period.

The surrender charge schedule for the majority of states is 10 years:

1. 10
2. 10
3. 10
4. 8.75
5. 7.5
6. 6.25
7. 5
8. 3.75
9. 2.5
10. 1.25

What does this mean?  Withdraw your money in years 1 - 3 and you take a 10 percent hit on the premium you put in (not on the amount that is withdrawn).

Want to take a loan from your own funds?  You can take up to 50 percent or $50k, but it will cost you 7.4 percent interest to borrow your own money.

Ouch.