Variable Annuities are sold, not bought:

Given what I see as overwhelming reasons to avoid this product, I invite any 'pro-VA' information, even if it only applies to a specific group of people. After all, I'm looking to approach this objectively, and if a VA would benefit a reader, I'd be happy to show how.

That said, I created a spreadsheet, for a side by side comparison between an after tax account and a VA. In order to avoid the accusation of 'stacking the deck', I used the lowest cost VA I could find, Vanguard and Fidelity now offer VAs with no surrender fee, and only a .25% VA expense. This is not a mortality charge as no insurance is included in this product. Further, I assume the investor is only in the 15% bracket at retirement. I suppose this is possible, someone finds themself to have a good income late in life and starts sacking it away, so they have the need for deferral well beyond the limits of 401k/IRA each year, but still are in the 15% bracket at retirement.

I am a fan of Immediate Annuities which are a very different product, I'll discuss these more in a future update.

Any questions, criticisms, comments, please click the link below to send me an email.

FLASH UPDATE - I recently became aware of a VA which has a fee of $20/month from Jefferson National. This is less than .25% as your account passes $100K in value. I know absolutely nothing about this company. I post this in an effort to remain objective on this matter and to find the lowest cost VAs out there for those whom a VA would benefit.