In one of my previous messages I explained to you what indexed annuities are. Hopefully you learned how valuable they can be for your retirement savings because now you can benefit from the upside prospects of the stock market without the inherent market risk of mutual funds.
In this I will dispel any misunderstandings of how illiquid annuities are.
As I explained in an earlier message annuities are not recommended as short term savings vehicles. However, other than you taking out more than the annual withdrawl limit or completely liquidating your account for reasons other than those that would not incur a surrender fee, annuities allow you quite a bit of liquidity.
Here are ways some annuities allow you to withdraw money from your account without incurring a surrender charge:
- limit your withdrawl to less than the annual withdrawl limit (usually 10%)
- annuitize your account, which means to convert it from a deferred annuity to an immediate annuity or more specifically choose an income option from your annuity
- become confined to a nursing home
- lose two or more activities of daily activity (adls) these are transferring (sitting to standing, getting in and out of bed), Hygene (bathing, grooming, oral care), Continence, Dressing, Eating (ability to feed self) and Toileting (ability to go to the bathroom on own)
- be diagnosed with a critical illness
Granted most of these are extreme instances but this is your retirement account NOT a Holiday Savings account and you should plan on leaving this money accumulate until retirement UNLESS there something catastrophic occurs. Which most insurance companies recognize and make allowances for.
Just Us Insurance is located in Southern California.
We proudly serve businesses and local residents in Corona, Murrieta, and Temecula.
Just Us Insurance operates throughout Riverside, San Bernardino San Diego, and Orange Counties
