Doug Warren Advisor Grid
- Thread starter SusieQ2
- Start date
- 11,284
That article is so slanted against variable annuities... it's sickening.
Variable annuities are the only annuity that have those kinds of fees.
And since you are just barely learning about IRAs, I'd be careful about reading sensational news articles like this.
Annuities offer guarantees in exchange for those fees... that index investing alone cannot provide. And since that article was written in 2010 - when the stock market was barely starting to "recover"... I know that those who had annuities BEFORE the crash in 2008 where VERY HAPPY with their protections.
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Oh, and historical averages are NOT the same as realized returns to the investor.
4 major factors affect investor return:
1) Fees and expenses
2) taxes - determined on an individual level
3) Investor behavior
4) Portfolio Construction
Remember that "the market" doesn't take ANY of that into account.
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BTW, you'll notice that article just said "annuities" without clarifying exactly WHICH annuity they were talking about.
Variable
Fixed Indexed
Fixed
Immediate
So when I read trash articles like that that classify ALL annuities as if they are all the same, I know I'm reading financial propaganda and trash.
Variable annuities are the only annuity that have those kinds of fees.
And since you are just barely learning about IRAs, I'd be careful about reading sensational news articles like this.
Annuities offer guarantees in exchange for those fees... that index investing alone cannot provide. And since that article was written in 2010 - when the stock market was barely starting to "recover"... I know that those who had annuities BEFORE the crash in 2008 where VERY HAPPY with their protections.
----------
Oh, and historical averages are NOT the same as realized returns to the investor.
4 major factors affect investor return:
1) Fees and expenses
2) taxes - determined on an individual level
3) Investor behavior
4) Portfolio Construction
Remember that "the market" doesn't take ANY of that into account.
----------
BTW, you'll notice that article just said "annuities" without clarifying exactly WHICH annuity they were talking about.
Variable
Fixed Indexed
Fixed
Immediate
So when I read trash articles like that that classify ALL annuities as if they are all the same, I know I'm reading financial propaganda and trash.
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