UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TTRoberts Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: Variable Annuities Date: 1/15/2001 12:44 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
FreeMarket, you asked:

<< I've heard that Annuities are a bad idea for retirement . Do variable annuities share the problems with annuities? >>

Which "problems" would that be?

Essentially, the only difference between Variable Annuities and Fixed Annuities is that you get to choose just how the money is invested. In effect you have the costs of an insurance product (an annuity) tied in with the cost of mutual fund investing. A life time income from an annuity can be a very strong point if you feel you're quite likely to live a long time. If you have a family history of not living a long time, them an annuity may not be something to give much priority to.

<< I'm trying to figure out how mutual funds and variable annuities will affect me differently. Currently, a little more than half of my retirement is going into CREF variable annuities (most of the rest is going into large cap index mutual funds) and I want to be sure I am making the right choice while I am young >>

If tax deferral is of paramount importance to YOU, then variable annuities can make very good sense. But as you plan for your retirement, if you want to be sure that your heirs will receive the most from you estate, you'll want to be sure that you use income from the annuity(s), and any other tax deferred account, FIRST. Annuities can be very effective in one's retirement planning. But one needs to fully understand the issues as they apply to one's own personal plans and objectives so that inadvertent land minds are not created.

Annuities with there expenses, various features and tax issues surrounding them make them something that should not be dealt with without good knowledgeable help. For the most part, annuities are not something that a typical consumer should try and deal with on their own . . . especially Variable Annuities. It can get very complex when trying to determine which annuity, if any, would be the best match for YOUR particular set of issues. So, as you do your retirment planning, you might want to give some serioius consideration on using some expert help. . . ???
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.