Variable Annuity

What are the advantages of a variable annuity? I am about to choose another advisor (let the last one go ) Alot of advisors seem to like variable annuities for investment vehicles. I need more info about them.
Please help !



VAs can offer some guarantees not offered by other investments, as well as tax-deferred growth and tax-free rebalancing. All this, of course with higher costs. This is what is is important: look at only the guarantees that are important to you, and weigh the extra costs. For example, I own one VA that has a base M & E of 60 bp (.06%) with no guarantees, but lower separate account charges than similar funds from the same fund manager. A Guarantee Of Principal death benefit costs 15 bp additional. Other guaranttes can cost more. The main thing is to read the prospectus and compare costs, as well as surrender periods. Also compare with other investment options. I know many advisors do not like or suggest VAs, so pick an advisor that offers many different products, not just VAs.



Add new comment

Log in or register to post comments