Don’t invest where surrender charges are complicated
Investments such “B” share mutual funds and broker-sold annuities carry surrender charges and thus can limit your flexibility. What if you want to get out of an investment for any reason?
For example, if you and your spouse invested jointly but got divorced a few years later, you can either stay invested together for a certain period or you can pay high surrender charges to get out of it.
Other than the divorce situation, surrender charges can also pose a problem if you need funds for emergency medical bills or a down payment to buy a new house. It is best to invest in a vehicle that allows you full access to your funds at all times.