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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: ToTradeWell who wrote (81636)	11/17/2003 11:19:35 PM
From: kleht	Respond to of 100058

ToTradeWell: I've never heard of putting variable annuities into a retirement account. Sounds to me like there is a real lack of fiduciary responsibility here. An annuity can be set up for anyone using post-tax dollars and have tax-deferred benefits. And there is no limit on the amounts that can be tax-deferred in this manner. But in a retirement account? Gee, wouldn't it be better to have retirement accounts set up and then fill them up with tax-exempt bonds? We would still have to pay taxes on the withdrawals. But at least then we would not have to be paying for the worthless insurance related to the variable annuity. I agree with you that variable annuities are the worst of the worst. If someone wants tax-deferral, annuities are the last thing anyone should consider. I empathize with you on this one. Perhaps a new "new" company is in your foreseeable future? Good Luck!!

To: ToTradeWell who wrote (81636)	11/18/2003 5:43:09 AM
From: longdong_63	Read Replies (1) \| Respond to of 100058

TTW, the only advantage to a variable annuity is if you invest 100,000.00 now for example and the market tanks and the value drops to 50,000.00 and you die, you are guaranteed the return of your original principal 100,000.00. However, your correct in that the fees are more pricey for VA's. Weird. Why would they put VA's in a 401K? Do they offer group term life insurance there? That would be cheaper IMO than VA's. The second question is who manages the portfolio or what fund is the wrap for the VA?