| Re: Variable Annuities?
I agree that VA's are not for everyone. But I am a believer that they are a great product for the right person. Let's say you are a 45 year old client that invested in the market in Nov of 07, and tragically passed away in March of 08. The $400K investment would have dropped to around $350k over this timeframe if invested in the market yet the beneficiary would have inherited the whole $400K. If this would have been invested in a MF then the bene would have only received the 350K. Also, we are forgetting that the average A-share mutual fund has an internal fee of about 1.2% and thats after paying an up-front load up to as much as 5%. The VA expense is higher but comes with extra benefits and the client doesn't have to pay the up-front load which really offsets the fee's. Just my 2 cents.
| 
