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March 09, 2006
Sales Of Variable Annuities Plunge
Net dollars invested into variable annuities dropped nearly 50% in 2005 over the prior year, in what I hope is a sign that investors are finally wising up to the oppressive taxation, numbing complexity, and crushing costs associated with most of these products. Such annuities essentially wrap mutual funds inside (often-unneeded) life insurance, and expose investors to taxation at levels as high as 300%+ over those for more straightforward investments.
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Posted on March 9, 2006 07:43 AM by Financ38.
Filed in Reports by Consumers under financial products.
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Comments
Actually, the immediate annuity payment represents both interest and a return of prinicpal over your life expectancy, though there are many permutations. This is completly different than the return on deferred annuities.
Posted by: Jeff Camarda at August 6, 2006 09:42 AM
do you know how much payment one can make in an immediate annuity? like if i were to put in 150k into an immediate annuity, how much interest would i earn in a month? what about taxes?
"Immediate annuities are what the name says, immediate. You make a one time principal payment towards an annuity, and start receiving interest payments in the form of fixed/variable rates the following month (just like deferred annuities). "
Source: http://www.moneysavingfreetips.com/deferred-annuities.html
Posted by: Joshua at April 16, 2006 02:43 PM
