Are Variable Annuity Guaranteed Living Benefits Worth It?
If you have an IRA, sorting through all the investment options can be very confusing. Unfortunately, there is a lot of hype out there and, in my opinion, the financial services industry is great at selling the sizzle and delivering very little steak! This is especially true in the area of annuities. Folks purchase variable annuities based on the belief that the principal is protected and other guarantees. Often there is a wide gulf between what the investor thinks a product does and what it really ends up doing. These are complex financial instruments that are sold using generalities. As with anything, the devil is in the details, and the more you know the details the less important some of these guarantees become. Take a look at a principal guarantee on a variable annuity. The ones that I’m familiar with guarantee that you can withdraw so much a year for a certain number of years, thus getting back your principal even if the market goes to zero. Think about that for a minute. Let’s sa