What You Should Know About Variable Annuities

January 28, 2020 by Alin David Lozada,

Many people are sold a variable annuity with the understanding they will receive a lifetime income stream, which sounds like a good idea when planning for retirement. 

The truth is there usually is a big price to pay when it comes to variable annuities. The biggest drawbacks include the fees and the potential to lose value based on the performance of the subaccounts invested in the stock market.

Many variable annuities are sold with an income rider guaranteeing a 6% increase every year for the income account, which is the account you will receive income from. What most people fail to understand is this rider fee can range from 0.25% to 1% of the account value.

Click HERE to read the full story via Forbes

Originally Posted at Forbes on January 27, 2020 by Alin David Lozada,.