Disadvantages Of Variable Annuities
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Variable annuities offer you the potential for unlimited growth since there are no caps on rises in mutual fund share prices.
Disadvantages of variable annuities. Or your savings may grow over time. Variable Annuity Advantages Disadvantages. Variable annuities have fees for Mortality and Expense.
You may invest a lump sum or add money every month. These fees over time can severely cut into your earnings potential. The Disadvantages of Variable Annuities Despite their versatility variable annuities are not all things to all people and do have some real limitations.
Some variable annuities do not allow additional contributions. Buying an annuity can tie your money up maybe for the rest of your life. More Cons of a Variable Annuity.
1 That said the disadvantages of annuities are numerous with a large. Unsuitable investment advice and planning. Variable annuities are not as liquid as other investments.
Annuity ownership does come with some attractive benefits such as. Another major problem with annuities is the complexity and opacity of the contracts involved. Variable annuities are treated like most other tax-advantaged retirement products.
With a fixed account your returns are limited by the contracts. Variables also have another little tax twist. These fees are similar to what you would pay if you invested.