Tuesday, March 31, 2009
The Best Variable Annuities
Sales of variable annuities in 2008 were down 15.1% from their peak in 2007, according to the Association for Insured Retirement Solutions, a variable annuity trade association. Total sales declined to $154.8 billion from $182.2 billion the year earlier.
Despite the decline—most pronounced with the year-over-year fourth quarter decrease in sales of 30.3%—clearly millions of investors still consider variable annuities an important part of retirement planning.
The biggest drawback to variable annuities is the additional costs associated with them as compared to straight mutual fund investing. The biggest benefit to them is the guaranteed withdrawal benefits which have proved their worth during this ongoing market decline.
As part of the annual update of TheStreet.com Ratings’ Consumer Guide to Variable Annuities, we reviewed more than 1,300 annuities listed in the Morningstar Principia Variable Annuities Advanced product to find those meeting specific criteria: no front-end load, no surrender charges, an insurance company with TheStreet.com Financial Strength Rating of B- or higher, a wide selection of mutual fund choices, above-average returns, and below-average internal expenses...
Mainstreet: The Best Variable Annuities
Despite the decline—most pronounced with the year-over-year fourth quarter decrease in sales of 30.3%—clearly millions of investors still consider variable annuities an important part of retirement planning.
The biggest drawback to variable annuities is the additional costs associated with them as compared to straight mutual fund investing. The biggest benefit to them is the guaranteed withdrawal benefits which have proved their worth during this ongoing market decline.
As part of the annual update of TheStreet.com Ratings’ Consumer Guide to Variable Annuities, we reviewed more than 1,300 annuities listed in the Morningstar Principia Variable Annuities Advanced product to find those meeting specific criteria: no front-end load, no surrender charges, an insurance company with TheStreet.com Financial Strength Rating of B- or higher, a wide selection of mutual fund choices, above-average returns, and below-average internal expenses...
Mainstreet: The Best Variable Annuities
Permalink posted by markw @ 4:33 AM 
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