Variable from a Variable Guy
I actually sell annuities including variables. While I often disagree with Suzie, I do believe that VAs are often sold to the wrong clients. In fact, in my opinion, most all types of variable and index annuities are oversold. I have seen huge portions of portfolios invested into various annuity contracts usually because the investor perceives a benefit that is simply not there.
Still, most investors who owned VA's and index annuities through the crash of 08 / 09 were thrilled to have the protection they offered.
Bottom line, VA's can be good, but you should know what you are getting in to, understand the expenses, and surrender penalties and what benefits are offered. Most important, make sure you know what the guarantees mean because most investors don't actually understand how these "benefits" do and don’t protect their portfolios.
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