Factors to Consider before purchasing a Hybrid Annuity
- Annuity earnings are tied to a market index
- Guaranteed complete protection from market losses
- Compound earnings tax free
- Designed to grow retirement cash and guarantee lifelong income
- Offer tax favored retirement income
- Advertised return often misleading – use ROI calculator to verify
- Has early surrender penalties
- Has a tax penalty on withdrawals prior to age 59 ½
- Is a buyer beware product because of complexity and fine print
- Dual purpose product – requires expert evaluation
- Most consumers buy the wrong annuity