Karp and Associates is in the opinion that Variable Annuities are quite often not in the best interest of the investor due to high fees. Consumers should note that they are often sold with high commissions that motivate sales brokers to offer them to their clients in lieu of less costly alternatives. When we encounter someone who owns a contract that is highly appreciated (significant growth) with exorbitant fees, we will typically recommend transferring the funds via a 1035 tax free exchange to a low load annuity so that the client may reduce their ongoing expenses dramatically. If the contract is inside an IRA account, the funds can be directly transferred into a Brokerage IRA without any tax ramifications. This is the least costly option with the most investment choices. The benefit provisions that the insurance company offers for the fees involved (Mortality and Expense Fees and Living Benefit Fees) should be considered prior to surrendering the contract and the benefits associated with them. If you would like for a Fiduciary to give you a professional assessment of your annuity contract including divulging all fees, benefits and tax ramifications please click here for a complimentary fee assessment and benefit evaluation.