Retirement Annuities from Momentum a *******.

Before Signing up for the Momentum Retirement Annuity: Get Informed About EACs

When considering a Momentum Retirement Annuity (RA), it's crucial to understand the Effective Annual Cost (EAC). The EAC is a comprehensive metric that represents the total annual cost of an investment, like a retirement annuity, expressed as a percentage of the investment's value.

Twenty-one years ago, at the age of 18, I signed up for a Momentum RA without understanding how fees and EACs worked. Initially, my EAC was a staggering 9%, which decreased over time. Over nearly two decades, the total value of my contributions only grew by 10%.

For my second Momentum RA, opened a few years ago, the EAC was still a hefty 4.9%.

I strongly urge anyone considering an RA to do their homework. Don’t rely solely on your financial advisor; conduct your own comparisons. There are online calculators and new products that can help you make an informed decision.

I'm extremely disappointed and frustrated that I entrusted my life savings and retirement planning to Momentum. I have since moved my investments to a provider with EACs around 1%.

**Key Takeaways:** - Always inquire about the EACs before signing up for any retirement annuity. - Use available online tools to compare different products and providers. - Taking the time to understand costs can significantly impact your long-term savings.