Troubles of Using IRA Money to Buy Variable Annuities
Have you been pitched the idea of buying a variable annuity by your broker or financial advisor? Were you asked to use money inside an IRA? It is important to understand that this is a risky investment for a number of reasons. Not only does it cost a lot of money, but brokers may charge high commission fees in order to benefit themselves. These are often promised as investments that are tax deferred. This is used by brokers to convince retirees who already have their money in a tax deferred IRA to invest their funds in variable annuities.
Watch As Attorney David Meyer Explains Using Retirement Money to Purchase Annuities
Unfortunately, not all brokers or brokerage firms understand the complex nature of variable annuities and the investors they pitch to are often not right for these types of investments. If brokers are unsure of the way variable annuities work and may not have even read the policies themselves. The benefits are not worth the investment for so many investors and the brokers may not even be aware of this fact.
With the various expenses, return on investment, and risks involved, it is advisable that you stay away from this type of investment. If you do feel that it is worth the investment, you should do proper research to make sure it is absolutely right for you. If your broker is trying to push variable annuities on you but cannot answer any questions you may have about the investment, you should discuss this option with another broker or brokerage firm to determine if it is right for you.
Call Meyer Wilson today if you are a retiree who has lost money due to a broker convincing you to buy variable annuities using your IRA money. Our securities lawyers work to help our clients recover losses they may have suffered from the bad advice of a broker. We offer free consultations so you can discuss your case with us without any concern.