Comments on: All Variable Annuities are Not Created Equal http://steadfastfinances.com/blog/2008/09/06/all-variable-annuities-are-not-created-equal/ A Personal Finance & Investing 101 blog that delves into current events, consumer education, and techniques to improve your bottom line. Sat, 20 Mar 2010 04:17:42 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Matt http://steadfastfinances.com/blog/2008/09/06/all-variable-annuities-are-not-created-equal/comment-page-1/#comment-60 Matt Tue, 23 Sep 2008 16:12:13 +0000 http://steadfastfinances.com/blog/?p=63#comment-60 Scott, I'm really not sure where the disagreement lies. In the example I gave, I don't directly come out and say "Vanguard is the best bare bones VA available" but I do make the argument that a low cost VA is an optimal tax deferred product for a person that does not need the funds immediately. Thank you for the tip on Jefferson National! Are you affiliated with them or have used their VA products (business or personal)? Scott,

I’m really not sure where the disagreement lies. In the example I gave, I don’t directly come out and say “Vanguard is the best bare bones VA available” but I do make the argument that a low cost VA is an optimal tax deferred product for a person that does not need the funds immediately.

Thank you for the tip on Jefferson National! Are you affiliated with them or have used their VA products (business or personal)?

]]> By: Scott http://steadfastfinances.com/blog/2008/09/06/all-variable-annuities-are-not-created-equal/comment-page-1/#comment-59 Scott Tue, 23 Sep 2008 15:41:10 +0000 http://steadfastfinances.com/blog/?p=63#comment-59 I have to strongly disagree with your thoughts on VA products. These products are not what they used to be and have an entirely new purpose. They have these things called a living benefit which guarantees income for life, without annuitization. Yes, you pay for it, but so what. Given the current market turmoil, which will always be there, the guaranteed income for life, which will increase if the investments perform, is worth the extra costs. No investment is perfect nor are all products right for all people, but considering the benefits of these products they cannot be dismissed. Tax rates will increase giving added value to VA products and even if tax rates do not increase the deferral, as you pointed out, works. Vanguard's VA is OK if you want a bare bones tax deferred product, but Jefferson National's $20 a month Va product is better. If you want all that a VA can offer than you have to get a full priced product which will cost between 2 and 3% a year, but guarantees you 5%, or more, withdrawals for as long as you live...regardless of market performance. I have to strongly disagree with your thoughts on VA products. These products are not what they used to be and have an entirely new purpose.

They have these things called a living benefit which guarantees income for life, without annuitization. Yes, you pay for it, but so what. Given the current market turmoil, which will always be there, the guaranteed income for life, which will increase if the investments perform, is worth the extra costs.

No investment is perfect nor are all products right for all people, but considering the benefits of these products they cannot be dismissed. Tax rates will increase giving added value to VA products and even if tax rates do not increase the deferral, as you pointed out, works.

Vanguard’s VA is OK if you want a bare bones tax deferred product, but Jefferson National’s $20 a month Va product is better. If you want all that a VA can offer than you have to get a full priced product which will cost between 2 and 3% a year, but guarantees you 5%, or more, withdrawals for as long as you live…regardless of market performance.

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