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Cautions About Variable Annuities.(Brief Article)

CAUTIONS ABOUT VARIABLE ANNUITIES

My insurance agent is trying hard to get me to convert my 401(k) into a variable annuity. I am retired and am currently on a 20-year payout of my company plan. What are the pros and cons of investing my money in an annuity?

Costs are the main con. Ask your agent how much of a commission he would get on the conversion--that's money that won't be reinvested for your future. Variable annuities are insurance products wrapped around mutual fund accounts. So you end up paying not only the underlying mutual fund fees but also a var

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