New York, NY (PRWEB) December 7, 2009
No-load variable annuities are sold directly to investors and do not require commissioned brokers (but can often be purchased through brokers). No-load variable annuities do have M&E fees, although usually they are significantly lower than load annuities - as low as 0.20% with a no-load vs. 1.50% or more for a loaded annuity. Portfolio fund management (sub-account) fees associated with no-load variable annuities are about the same as loaded variable annuities, but no-loads typically will not charge a 12b-1 fee.
No-load annuities do not have surrender charges, so they can be a good option for investors needing spur-of-the-moment access to their money (although even with no-load annuities, investors under the age of 59 ½ are subject to a 10% federal excise tax as well as ordinary income taxes on any gains). The most competitive no-load annuities offer the same guaranteed minimum income and death benefits you'd expect with a loaded annuity.
Annuity FYI highlights as an example Ohio National's ONcore Wrap No Load Annuity has an optional Guaranteed Income Benefit and Death Benefit. Annuity FYI considers both riders to be among the most competitive in the market. Not all no-load variable annuities offer optional living and death benefit riders, so Annuity FYI cautions that investors ask specifically before making an investment decision, or visit Annuity FYI's Compare No Load Annuity table.
Annuity FYI does caution investors that when you purchase a no-load annuity, you are not getting service from your financial professional. A commission fee is a way of compensating these professionals for their service. Spending time with you discussing your goals and various investment programs, and regular correspondence, are some of the services generally provided in exchange for a commission fee. If looking for a relatively high degree of support and advice, the commission fee, or 'load', may be worth it.
Annuity FYI suggests that for investors who do not need a high level of guidance from a financial agent, and who are comfortable monitoring their own investments in exchange for lower fees, no-load variable annuities may be appropriate. For more information on No-Load Annuities, contact an Annuity FYI Expert at 1-866-223-2121. Or, send your inquiry by e-mail to email@example.com.
ABOUT ANNUITY FYI
Annuity FYI is a free resource for learning about, comparing, and selecting the most competitive annuities. Annuity FYI was launched in November of 2000 and since then has become the nation's most respected resource for educating investors on annuities. Annuity FYI has been featured in leading financial publications including Barron's and The Wall Street Journal. Annuity FYI's mission is to seek out the very best annuities and annuity riders among the thousands of products in the marketplace, and give investors the expert resources necessary to make an informed annuity purchase. Specifically, Annuity FYI researches the universe of annuities in the US market, identifies the very best annuity products and riders in each category, presents best-of-class annuities in an organized, easy-to-read format, and educates investors about the types of annuities, their advantages and shortcomings. Annuity FYI also makes Annuity Experts available to individual investors toll-free to answer questions about annuities at 866 223-2121.