The Old-Fashioned Variable Annuity, Staring Into Retirement

The Old-Fashioned Variable Annuity, Staring Into Retirement

Advisors long for the good old days when variable annuities had high guarantees. But guarantees are not what they once were, and advisors continue to shun VAs.

Gone are the days of a 5 percent guarantee on assets held in a variable annuity, and advisors have taken notice. Variable annuity sales were $38.2 billion in the second quarter of 2013, down 1 percent from the second quarter of 2012, according to LIMRA, Windsor, Conn.

Broker-sold variable annuities are being eaten alive by indexed annuities, immediate annuities, deferred annuities, fee-only annuities with low cost living benefits, and low-cost stripped-down annuities, says Rick

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TAGS: Insurance
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