2007-01-01 21:49:57 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Variable annuities are different than regular mutual refunds in several ways.
1. VA's are tax deferred.
2. Many VAs havce several option benefits.
3. If you want a steady stream of income upon annuitization.
That being said, VA are expensive for that they are. You are not only paying mutual fund fees, but also fees on the contract itself (M&E charges) and charges for each option benefit.
So, look at your circumstances and choose what would suit you best.
Note: VA give your financial planner a higher commission than mutual funds do because VA's tend to be a longer term investment. So, they may direct you to these products so they can reap the benefits.
2007-01-02 00:52:42 · answer #1 · answered by Ubiquity 2 · 0⤊ 0⤋
I really recommend that you start reading Robert Kyiosaki's 'Rich Dad, Poor Dad' series if you want to or are investing.
Mutual funds are good to invest in if you don't have experience in the field. But if the market falls, you will be hit hard. And there are a couple of reasons why you should not invest in mutual funds. Just read the book;)
2007-01-01 22:00:06 · answer #2 · answered by CrashBoy 2 · 0⤊ 0⤋
Look at the net gain of of the annuity. I have yet to see one that beats government bonds and if they do, it's not by much. Then you pay fees on top of that. Annuities also have rules where you have to wait before you claim your money or you face a penalty if you try to get your own money out early. If you buy I-bonds instead, you will have better control of your money with a higher rate of return.
2007-01-02 07:34:26 · answer #3 · answered by gregory_dittman 7 · 0⤊ 0⤋
They cost to much. Go to Vanguard.com , They have some great funds and do not have any up front charges. They also have some of the lowest expenses in the industry. Try their Equity Income Fund it is a good one.
2007-01-01 22:05:52 · answer #4 · answered by ? 6 · 0⤊ 0⤋
Because you could do better in the market, or money market funds.
High fees.
2007-01-01 21:57:21 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Or go to forex. No fees.
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2007-01-01 22:17:58 · answer #6 · answered by muso m 2 · 0⤊ 0⤋