No. of Recommendations: 0

<<Do you really think annuities are lousy when compared head to head with a mutual fund within an IRA?

I have a variable annuity through my 403(b) plan which invests in stocks much like a fund. I'd be interested in hearing what you think the disadvantages are compared to a mutual fund in an IRA.>>

The annuity adds an extra layer of mortality and administrative expenses. Take the same fund by itself, and all you have to affect the return is the expense incurred by the fund. Put that fund inside an annuity, and now you have the others as well. In direct competition within an IRA, the fund standing alone will beat the fund inside the annuity every time.


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.