2% fee upfront on SPIA purchase

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2% fee upfront on SPIA purchase

Postby peanutbuddy » Thu May 02, 2013 11:23 am

I have been investigating annuities (interest is in SPIA type only) and it seems that every company (VANGUARD included) charges at least 2% of the annuity value being purchased upfront. Does anyone have any information on credible companies that charge less for such a product??
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Re: 2% fee upfront on SPIA purchase

Postby pkcrafter » Thu May 02, 2013 1:41 pm

You might review this site. Maybe you can purchase direct from one the the listed companies.

http://www.incomesolutions.com/InstPricing.aspx

This site is recommended by Paula Hogan in this article (pg 3):

http://www.advisorone.com/2013/04/29/investing-for-a-lifetime

Please repost if you find you can bypass the transaction fee.


Paul
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Re: 2% fee upfront on SPIA purchase

Postby dickenjb » Fri May 03, 2013 6:54 am

There are two choices - you can buy through a company like Vanguard which tells you about the fee, or a company that does not.

In any case, what you are comparing is the periodic income you are getting which is AFTER the fee.

So the fee is immaterial. What matters is the monthly (or quarterly or annual) income that your lump sum buys.
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