DollarTalkNet

The Way Smart Money Diversifies Risk

Wow, a comment by one of the authors. I'm very impressed. I also appreciate the explanation, as I was feeling compelled to say something about the distinction between asset classes and investment vehicles.

I would like to say, however, that I have personally experienced the benefits of variable annuities, in both the guaranteed income and guaranteed death benefit categories. If the only benefit to a variable annuity was the tax shelter, then the costs would certainly not be worth it, but there are many additional reasons for using them. Of course, the costs should still be weighed in comparison to the benefits, but many older investors are turning to these benefits today because of their need for lifetime income (without annuitization) and the desire to guarantee something to their heirs.