The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Variable Annuity vs Bond Fund||Date: 10/6/1999 9:41 AM|
|Author: pauleckler||Number: 14273 of 75649|
There is an annuities board in the Speakers Corner folder where these matters are discussed. A search on the term annuity will find many prior threads.
A big problem with the variable annuity is that in most cases the annuity contract provides payments for the life of your mother or for a fixed minimum number of payments, but on her death no assets remain. If the same money is in a mutual fund or bonds, her income will be lower, but her heirs will inherit most of the principle.
Rather than bond fund, you should take a look at laddered maturity corporate bonds. They are discussed on the Bonds and Fixed Incomes board in the Investors Roundtable folder.
The usual Foolish strategy would be a combination of laddered maturity bonds and index mutual funds.
Best of luck to you.
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