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What are pros & cons of including a Variable Annuity in a retirement plan?
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What are pros & cons of including a Variable Annuity in a retirement plan?

You need to really watch the fees on annuities.

One good place to start is the Quicken web site that has a section on annuities:
http://www.quicken.com/annuities/

You can also try the Annutities section at SmartMoney:
"What's Wrong With Variable Annuties?"
http://www.smartmoney.com/ac/retirement/investing/index.cfm?story=wrongannuities

and

"Who Should Buy Variable Annuities."
http://www.smartmoney.com/ac/retirement/investing/index.cfm?story=buyannuities

For a slightly more positive view of annuities you can try the National Association For Variable Annuities:
http://www.navanet.org/

and

AnnuityNet.com:
http://www.annuitynet.com/default.asp


Hope these help.

Tyalor
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Variable Annuity Pros and Cons:

Pros:
Tax deferred growth
Unlimited annual contribution amounts
Automatic Account rebalancing/Asset Allocation
Guaranteed death benefit to beneficiary

Cons:
High internal insurance costs
Withdrawals are taxed as ordinary income not capital gains
No step up in basis to heirs at death of owner
Limited investment choices
Surrender charges are high a many policies

These are just the basics.

Alan McKnight, CFP
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