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Variable Annuity Pros and Cons:

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

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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