The main disadvantage of Annuities is that your money is not 100% liquid until your term is over. Some annuities have more liquidity than others; most offer 10% yearly penalty free liquidity. Some offer up to 20% yearly liquidity, while some just offer 5%.
Most deferred annuities allow complete liquidity in the event of a terminal illness or a Long Term Care need.
This is why it is important to work with an experienced independent agent who can evaluate your needs and help you find the right product for your situation.
Another commonly cited disadvantage are "high fees". But in fact, only Variable Annuities automatically include fees. But the fees do tend to be high in most peoples opinion.
It is important to remember that a "disadvantage" all depends on perspective and what your needs are.
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Most deferred annuities allow complete liquidity in the event of a terminal illness or a Long Term Care need.
This is why it is important to work with an experienced independent agent who can evaluate your needs and help you find the right product for your situation.
Another commonly cited disadvantage are "high fees". But in fact, only Variable Annuities automatically include fees. But the fees do tend to be high in most peoples opinion.
It is important to remember that a "disadvantage" all depends on perspective and what your needs are.