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Annuity Fees: Are You Paying Too Much?

The article from MSN Money discusses the various fees associated with annuities, which are financial products designed to provide a steady income stream, typically during retirement. It highlights that while annuities can offer benefits like tax-deferred growth and income for life, they come with a range of fees that can significantly reduce the overall return. These fees include mortality and expense risk charges, administrative fees, investment management fees, and surrender charges for early withdrawals. The piece advises consumers to be aware of these costs, as they can be complex and often hidden within the fine print. It suggests that potential buyers should compare different annuities, understand all associated costs, and consider if the benefits justify the fees, or if other investment options might be more cost-effective. The article also points out that some annuities have lower fees, like fixed or indexed annuities, compared to variable annuities which might have higher costs due to their investment options.

Read the Full Kiplinger Article at:
[ https://www.msn.com/en-us/money/other/annuity-fees-are-you-paying-too-much/ar-AA1BpSgN ]