1 /5 Fred Crowley: Based on my Mothers experience, I wouldnt recommend these people. She was initially drawn in by a CD ad in the then St. Petersburg times, offering a rate of 6%. Upon arriving for her appointment, she was told the deposit limit was only 10K, and was steered toward an "annuity". Against my better judgement she got involved with one, then another.
The second involved a substantial principal, with a first year rate of 6.5%. She made it clear that she needed to derive monthly income form this, and was assured that she would. Upon arriving to sign the contract, she was told the first year dividends would not be available until the contract entered its second year, but after that, she could arrange a monthly direct deposit.
The following nine years, she received a miserable 1.5% annual rate. No matter that the banks were offering better rates than that, she was told, "well, you cant do better on a one year CD anywhere else". True, but when the banks one year term is up, you can take your money and go find a more competitive rate.
She was stuck with that annuity for ten years, ten years at 1.5%.
And yes, theres a substantial penalty for cashing out early.
When she told the representative she needed more income, she was told, "Take some of your money out of the bank and spend it.". Now thats really great advice, superb way to grow your wealth.
