I'd rather buy stocks that I intend to hold longer than a year in a taxable account and pay 20% tax rate on the stocks I sell than to have to pay 20-30% when I take the money out of variable annunity (depending on your tax rate for earned income).Also you cannot invest in individully managed stocks through the variable annunity products (let me know if you find one) so eventually you may wish to have your assets in a group of stocks you have selected. You cannot do this with a VA. I bought my VA's when the long-term tax rate was 28% and not the 20% it is now so it made more sense then to get into them. I also invested more then in mutual funds and now I don't do any mutual funds. Mutual funds tend to create more tax events since they tend to churn the portofolio.
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