2% fee upfront on SPIA purchase

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peanutbuddy
Posts: 16
Joined: Fri Nov 09, 2012 7:37 pm

2% fee upfront on SPIA purchase

Post by peanutbuddy »

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??
pkcrafter
Posts: 15461
Joined: Sun Mar 04, 2007 11:19 am
Location: CA
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Re: 2% fee upfront on SPIA purchase

Post by pkcrafter »

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/in ... a-lifetime

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


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
dickenjb
Posts: 2941
Joined: Tue Jan 05, 2010 12:11 pm
Location: Philadelphia PA

Re: 2% fee upfront on SPIA purchase

Post by dickenjb »

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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