An Annuity Trade Can Be Costly

Before you switch insurance contracts, make sure you carefully compare the annuities' features and fees.

EDITOR'S NOTE: This article was originally published in the May 2011 issue of Kiplinger's Retirement Report. To subscribe, click here.

You've held a variable annuity for some years. Now an insurance agent is pressuring you to trade in the contract for a newer model with extra features. Resist the hard sell: While the broker will pocket a fat commission, such annuity exchanges are rarely a good deal for investors, according to many financial experts.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Contributing Writer, Kiplinger’s Retirement Report