Variable Annuities Pros And Cons

Where there are pros there are often cons too.

Variable annuities pros and cons. Life Insurance Marketing Research Association. Depending on the insurance company and features selected the fees and expenses can be upwards of 3. They compound tax-free until you take the money out.

Variable Annuity Pros and Cons. Pros and Cons of Variable Annuities. Early Withdrawal Penalties and Surrender Charges.

Variable annuities have administrative fees as well as mortality and expense risk fees. Variable annuities are also. The same holds true for annuities.

The money that you put into a variable annuity can be deferred for taxation purposes into the future. Therefore you encounter the same kind of principal. You are able to defer taxable income into the future.

Variable annuities have fees for Mortality and Expense. Theres a bigger opportunity for growth. Many annuities have optional riders that push the overall fees to 3 or more.

High fees and expenses In many cases the fees for variable rate annuities can be up to 4 percent per year. High risk Since the value of your annuity is tied to other investments there is a risk of loss in the event of a market downturn. Variable annuities can be expensive.