Monday, August 21, 2006
Variable Annuities Not Always Lemons
Most variable annuities are the lemons of retirement vehicles because of many sour features: They are generally overpriced, oversold and fully taxable when you withdraw the moneyfrom them.
That's not the end of discussion, though, when it comes to these complex amalgams of insurance and mutual funds. There are instances when annuities make eminent sense, although you have to choose them carefully.
When combined with thoughtful financial planning, annuities can provide a reliable, insured income stream at retirement. They essentially guarantee a monthly payment and are especially valuable when you don't have a defined-benefit pension.
Variable Annuities Not Always Lemons
Source: InsideBayArea.com
That's not the end of discussion, though, when it comes to these complex amalgams of insurance and mutual funds. There are instances when annuities make eminent sense, although you have to choose them carefully.
When combined with thoughtful financial planning, annuities can provide a reliable, insured income stream at retirement. They essentially guarantee a monthly payment and are especially valuable when you don't have a defined-benefit pension.
Variable Annuities Not Always Lemons
Source: InsideBayArea.com
Permalink posted by armandn @ 8:02 AM 
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