Variable annuities -- anyone happy with theirs?

[LXEX55]

Variable annuities are very difficult to shop for since it is very hard to compare products, unlike simple fixed immediate annuities. Also lots of bad stuff has been written about them. Does anyone have a variable annuity that they are happy with? If so, may I ask who you bought it through, etc.

 

[pb4uski]

 

[joeea]

Does anyone have a variable annuity

I have some VAs through Lincoln Financial. I bought them before I knew better.

that they are happy with?

Nope. I wouldn't do it again.

 

[travelover]

Variable annuities are very difficult to shop for ...........

Yes, that is why they are usually "sold" by salesmen as opposed to "bought" by informed consumers.

 

[Chuckanut]

How old are you?

If you are in your 60's the best annuity you can buy is delaying taking SS as long as possible, up to age 70 if you can do that. And, it's COLA'd.

 

[Souschef]

Yes, that is why they are usually "sold" by salesmen as opposed to "bought" by informed consumers.

Agreed. DW was sold one by a "friend" to supposedly protect her late husband's life insurance proceeds against creditors. It turns out that was BS.

I helped her by restructuring the annuity to get better returns, but they still suck.

 

[CardsFan]

How old are you?

If you are in your 60's the best annuity you can buy is delaying taking SS as long as possible, up to age 70 if you can do that. And, it's COLA'd.

Oh No! Another Social Security Thread

Just kidding. You are quite correct, if you want an annuity, that is better than anything you can buy on the market.

 

[kaneohe]

I have some VAs through xxxxxxx. I bought them before I knew better.


Nope. I wouldn't do it again.

buying a VA is like doing a non-deductible contribution to TIRA and leaving it there. No deduction for contribution and growth is taxed at ordinary rates.
Better to invest in efficient index funds in a taxable acct and have gains taxed at CG rates. I've done both VAs and non-deductible contributions and regret both.

 

[Chuckanut]

Oh No! Another Social Security Thread

Egads! I did not mean to start that never ending, ongoing futile battle of when to take SS. Please notice that I said delay. I did not give a firm number of years. Make your own COLA'd annuity by delaying SS as one sees fit.

I hope I have covered my tracks well enough to prevent another lengthy discussion, and avoid .

 

[Z3Dreamer]

My annuity has turned out pretty good. But, in hindsight, I would not do it again. In a year where we had maxed out on 401k's and other stuff, DW inherited $15k. I put it in a Fidelity VA. It now sits at $100k. So a compounded rate of 8% or so.

The pro's: couldn't touch it so I did not spend it, no taxes so far, don't need to take it out for many years. One of the big index funds, VFIAX didn't start until 11/13/2000. Today some will say: "Just buy an index fund". Although there were index funds back then, they were not widely known (I didn't know much about them). So, it seemed like a good idea, back in 1994.

The cons: all gains are taxed at ordinary rates. An index fund would be at cap gains rates. That mortality charge is more than $0. In 2019, you have so many better choices than there were back in 1994. Subject to financial stability of insurance company.

 

[VanWinkle]

Did someone mention another SS thread on delaying benefits..................

 

[Floridatennisplayer]

Did someone mention another SS thread on delaying benefits..................

That’s a cool day to retire!!!!! Love it!

 

[VanWinkle]

That’s a cool day to retire!!!!! Love it!

Turned out to be a lucky day!! Thanks Floridatennisplayer!!

 

[Chuckanut]

Did someone mention another SS thread on delaying benefits..................

Calm down......

Only as a possible alternative to shelling out big bucks for a variable annuity.

 

[Floridatennisplayer]

The correct answer is just so variable............

 

[mrfeh]

Bought a VA once about 25 years ago. Realized my mistake 4 years later and cashed it out.

Another vote here to avoid them.

 

[retired1]

I had with Vanguard & Fidelity. Very expensive. Moved to Fixed Annuity.

 

[bclover]

I inherited one when my husband died. since I was pretty young and only had 4 years left before the penalty period was over I let it ride until I could cash it out.

I did so as soon as I could. simply too expensive