Which annuity is better for a hands on investor?

My wife and I are in our early 60s. We plan to retire in about 3 years. We are interested in a variable annuity for part of our retirement plan. We are considering LifeGuard, Freedom with Jackson, or a similar Vanguard plan. Which is better? We are hands on investors. We will consider a managed portfolio when we are in our 80s.

Retirement, Annuities
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October 2016

I recommend consulting with a CFP and/or CPA before making any decisions.

With annuity selection, I advise clients to read the fine print. The devil is in the details. Be aware of:

  • High commissions/sale incentives for the individual selling the product,
  • High expenses for investor,
  • Tax-inefficiencies,
  • They are illiquid and frequently have surrender periods,
  • There is no step-up in cost basis at death,
  • Guarantees are not always what they look like

For clients where annuities are appropriate (based on personal circumstances), I recommend checking out TIAA-CREF Intelligent Variable Annuity or a Vanguard annuity.

October 2016
October 2016
October 2016
October 2016