Variable, indexed annuities may cost more than you think

September 3, 2019 by Greg Iacurci

Variable and indexed annuities are lambasted in some circles as being high-cost insurance products, with all-in annual expenses often exceeding 3%-4%.

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Wink’s Note:

1. Lumping VAs and IAs together, in asserting that the products have “annual expenses often exceeding 3% – 4%” is akin to saying that the majority of fast food sales are attributable to McDonalds and Ruth’s Chris Steakhouse and indexed annuities DO NOT have fees;

2. Optional riders on IAs are elected on 38.8% of sales and have rider fees ranging from 0.50% – 1.50% of the Account Value annually;

3. We cannot call IAs “investments,” and neither should you.

Originally Posted at InvestmentNews on August 29, 2019 by Greg Iacurci.