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Subject:  Re: Hartford Annuities Date:  1/16/2004  1:55 PM
Author:  TTRoberts Number:  38581 of 88494

busman, you wrote:

<< >>>>>Annuties are subject to a 10% penalty if they are not held to age 59 1/2. Plus you lose any LTCG with them. Plus they have high annual fees. Finally there is not stepup in basis at death. >>

GOOD point. I feel that's definitely an issue that should be looked at very closely.

<< >>>>>> I did not look at the prospectus but fixed annuities generally are not invested in mutual funds, variable are, however. >>

You're correct. Fixed annuities do not have “separate accounts” and are not invested in mutual funds. They are invested in the insurance company's general account.

However, variable annuities very often DO have fixed account investment options. But with the overriding expenses of a variable annuity, I don't know why anyone would want to much in such a position.

<< >>>>>>I would be very cautious about investing in annuities. Given the amount of money you are spending I would certainly get a second opinion. Preferably from someone who is not selling annuities. >>

Unfortunately, it's very hard to find a good expert on annuities who does not sell them. For example, I would suggest that MOST fee-only CFP's only know the basics are hardly a match for someone who directly deals with them on a daily basis.

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