[brostholder]

I will assume that a variable annuity is one that participates partially in stock market increases, but protects against stock market decreases. In 2008, I wish I had my money in a va instead of the market. For the past 3 months, I am glad my money is in the market (where it earned me 20%) than in an annuity that would have earned me 1% for the same 3 months. If I had millions of dollars, I would certainly put enough in an annuity to cover all my "costs". But, with my present net worth, an annuity would not throw off enough income to let me retire at the income level I want. So, I am forced to assume some risk in the market. A previous poster said an annuity should be part of a balanced portfolio. I agree and recommend shopping around for the ones with the lowest fees.