Can a 10 year variable annuity with 5 year penalties be cashed out after 5 years without penalty?
You need to take a look at the surrender charges your particular VA contract.
FAQ Topics:
Glossary:
Annuity
An annuity comes in many forms, but a simple definition is that an annuity is a contract that converts a sum of money into a series of periodic payments for an agreed upon period of time. An annuity can be thought of as a financial vehicle that converts a pool of money into a stream of income. Annuities are most useful in addressing the financial planning needs of people in or approaching retirement. Annuities are unique in the financial world because they can provide protection against the risk or outliving one’s assets (longevity risk) by guaranteeing income payments in perpetuity or any other selected amount of time. Annuities can be viewed as a type of personal pension plan. Social Security is similar to an annuity in that money contributed over the course of one’s working years is converted into a series of periodic payments that provide income during retirement.
Developing a Basic Financial Plan
There are some basic financial planning steps you can take on your own, and they do not require financial planning software or the input of a financial professional.
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Financial Planning for Retirement
At the highest level, an annuity purchase process should consist of the following steps:
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Who Needs Annuities
Annuities are neither useful nor appropriate for many people.
As emphasized throughout this buying guide, a good financial plan that focuses on retirement income needs should be the foundation of any annuity purchase decision.
Glossary:
Companies:
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Why Buy an Annuity
A handful of very large, powerful trends are currently shaping the retirement income landscape:
Glossary:
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