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I do not think that you understand the implications of what you have done by purchasing an annuity.

Depending on the issuer of the annuity, there are various types of charges on top of the insurance cost which can also vary a lot.

First there is a penalty from the federal government for redeeming monies prior to age 59 1/2.

Second there may or may not be "surrender charges" which mean that monies taken out are subject to a penalty if the monies have not been in the annuity long enough. Vanguard, TIAA-CREF, and I believe Charles Schwab have annuities withoug surrender charges which are approved in New York. Janus has such an instrument approved in other states.

However, and this is another problem, monies removed are not taxed at the capital gains rate but at the full income rate. These instruments function more like after tax IRAs in that respect.

On the positive side, annuities do not go through probate, and monies do not have to be withdrawn before age 85 so they can provide temporary cash during probate and also serve as a shelter for individuals who have to cash out IRAs, 401Ks, 403bs and other retirement vehicles at age 70 1/2 or who have maxed out on all other instruments.

Since the lowering of capital gains tax, they are of less value than they used to be.

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