Let's forget for a moment that we originally started this thread discussing an annuity inside of an IRA (which is unforgivable on the part of the financial advisor); and let's look toward a more fundamental issue; should one ever by a deferred variable annuity?Several studies where done (of course, not a one can I put my hands on) that compared a VA with some alternatives:1. Purchase of the same amount of term life insurance and investing the balance in a regular taxable account investing in indicies: either an index mutual fund or the tradeable index itself; e.g. DIAs, SPRs, QQQs, etc.2. Same as (1) above ecept the extra investment went into the same mutual funds as offerred by the insurance company; albeit, typically a different class than offerred inside the annuity.IN EVERY CASE, (1) and/or (2) beat the VA by varying but very wide margins. The only possible explanation is that VAs are loaded up with outrageous fees that hurt the consumer.I come to the conclusion that, but for the rare circumstance that I can not envision, NO ONE should ever purchase a VA.TheBadger(Conversely, in certain markets, and at certain ages, I have a reverse opinion on immediate annuities).
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