Unwelcome surprise.

14%, 14%, 13%, 13%, 12%, 11%, 10%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 0%.

Do you know what these numbers represent? This is a 15 year surrender charge on an equity indexed annuity. This product was sold to one of my clients through her 403b plan broker. Guess what happened when my client needed money. She was told she could only get out a certain amount before she was hit with a huge surrender charge. Do you think if my client ever knew there was a 15 year surrender charge she would have ever gone through with signing the paperwork? That answer is no. Guess what the cap is on the growth. 5.25-7% Meaning, she missed the extra 8% the S&P 500 earned over the last few years. 

Be careful people.