The Ultimate Guide To AnnuitiesYour One-Stop Resource for Retirement
Should I exchange my existing annuity for a new one?
A general rule: Never rely entirely on the salesperson’s arguments. You always need to check all the sales document to know the potential risks and fees.
Usually when the idea of exchanging our existing annuity is suggested is because of the big commissions that this change will report that the sale’s agent instead of the benefits that it will imply for us. This kind of changes are known as 1035 swaps is sold as a big opportunity to enjoy the features of a new annuity without paying any taxes, usually minimizing the fact that we will need to start a surrender period. For example: Let’s say you owned an annuity for 10 years, an account that you could close without surrender charges. If you swap this account, you will face a surrender charge if you decide to withdraw your money before a determined period.