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ANNUITY SCAMSThese annuity scams include the sale of inappropriate annuities to seniors for the sole purpose of receiving huge commissions with double digit early withdrawal penalties. These penalties can stretch from seven to fifteen years or more and they generate thousands of consumer complaints each year. Many of the bogus investment annuities sold to seniors under performed the market, even plain old bank certificates of deposit accounts. These annuity scams deceived seniors into using their hard-earned retirement nest eggs to buy unneeded annuities that actually did damage to their financial security. Seniors were told that if they placed all or most of their savings into annuities, they would be 100% insured and safe from all market risks. CLICK ON BUTTON TO ORDER 15-EBOOK BUNDLE-$24.95
Is an annuity a bogus investment? It depends on the contract types, Fixed SPDA or FPDA's. Single-Premium Deferred Annuity (SPDA) In a single premium deferred annuity (SPDA), the contract holder makes one deposit at the beginning of the contract and is then prohibited from making subsequent deposits to that contract. Should he or she wish to make additional deposits, a second contract must be purchased. Typically, most insurance companies require a minimum deposit of $5,000 to purchase a single-premium annuity. Some companies will waive the $5,000 minimum if the deposit is being made as part of an IRA. In those cases, the minimum is usually $2,000, consistent with statutory IRA limits. The flexible premium annuity allows the contract holder to invest varying premium payments to the deferred annuity. The flexible premium annuity may require a minimum initial premium, such as $500 to $1,000, but will then allow the contract holder to make additional deposits for as little as $25 to the contract as frequently as he or she wishes. Not all annuities are a bad investment for seniors! An annuity is a product which can provide you with an income for as long as you live, if you purchase the right one based on your individual needs.
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