The Ultimate Guide To AnnuitiesYour One-Stop Resource for Retirement
Is a variable annuity a smart investment for my IRA?
This is a common move by sales agents, but generally is not the most convenient idea. One of the biggest benefits you get after buying an annuity is that your money will grow tax-deferred but you’re already get this benefit from Individual Retirement Accounts, so it makes no sense to own an annuity instead of a mutual fund.
Variable annuities are not the best way to fund a IRA, in fact, is a terribly expensive alternative. Despites an annuity could offer insurance provisions, in most cases you’d be better with a low-cost IRA and using the money you managed to save to buy a life insurance policy.