Summerlin Benefits Consulting Q&AAnswer
Oct 22, 2024 - 11:19 AM
The biggest disadvantage of an annuity is its lack of liquidity and flexibility. Once funds are invested in an annuity, accessing the money can be challenging, especially if you need it before the contract's maturity. Early withdrawals often come with penalties and surrender charges, which can significantly reduce the value of your investment. This limits financial freedom in case of unexpected expenses or changes in financial goals. Additionally, some annuities, like variable annuities, can expose your principal to market risk.
