Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

which factor is a disadvantage of an annuity? high penalties for early …

Question

which factor is a disadvantage of an annuity? high penalties for early withdrawal no limits on contributions guaranteed income for life tax - deferred growth of investments

Explanation:

Brief Explanations

Annuities often have high penalties for early withdrawal as a way to encourage long - term investment. No limits on contributions, guaranteed income for life, and tax - deferred growth of investments are generally considered advantages.

Answer:

high penalties for early withdrawal