At first blush, annuities sound like a good deal for investors who would like to set aside capital and obtain defined, periodic payments over the long term. However, annuities, and more specifically variable annuities, can be difficult to understand. They can turn out to be more costly than originally expected, and due to their tax-deferred nature, they are typically inappropriate for retirees.<\/p>\n
For the average investor, the length of the typical variable annuity prospectus can be intimidating enough. Some are longer than 100 pages. Then, the often-lengthy document\u2019s forbidding quality is amplified by the use of cumbersome legal language that clearly was not intended for the layman. Add to that backdrop the fact that a series of confusing surrender charges and fees are woven into the prospectus. The combination makes for a very complex document indeed.<\/p>\n
The basic premise of the variable annuity is that it acts as an insurance contract guaranteeing a (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" At first blush, annuities sound like a good deal for investors who would like to set aside capital and obtain defined, periodic payments over the long term. However, annuities, and more specifically variable annuities, can be difficult to understand. They…<\/span><\/p>\n