Variable Annunity Anyone?
I'd like to hear from anyone who has or is thinking of a variable annunity. My financial planner is suggesting one for me. I trust her a great deal but the information on these things is hard to find, they are complicated, and the chat on the web is often quite negative. My stats: 54, single, plan to retire at 70, no pension, fully invested in a Roth, have both a good stock/bond portfolio and 403b portfolio, just bought long term care insurance. Thus the annunity would be an additional piece of a total investment package. The annunity investment would be approx. $200,000.
I'm still at the gathering-information stage. Basically I understand that the annuity grows tax-free and that it is a type of "income insurance." Since I don't have a pension and may live 20 years after retirement, a guaranteed annual income for the post-retirement years is certainly attractive to me, especially if the market crashes again and I lose other assets (I'm generally a pessimist in this regard). But much of what I read states that the fees for an annuity could eat up any potential gains. I have discussed the fees with my financial manager as well as the possibility of simply investing the $200,000 in a muni. I would welcome any thoughts or experiences, as well as any recommendations for sources of information.