Mid-Term Withdrawals

What impact can mid-term withdrawals have on interest credits?

A withdrawal can seriously affect how much money you potentially have since index gains with many indexed annuities are calculated at the of the year or at the end of the term. Since all annuities are long term retirement vehicles, consumers should turn to their passbook savings, money market accounts, and short term Certificates of Deposit to meet unexpected emergencies.

Far more importantly, financial professionals should recommend that only a percentage of a consumer’s retirement dollars be placed into an annuity so that a contract owner can have the full benefit of a Fixed Indexed Annuity.