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• Variable Annuity Watch, 2008

  By Scott Burns Variable annuities have a tough row to hoe. Doomed to being measured against better alternatives, they simply can’t overcome the burden of their fees or the higher tax rates investors must pay on their returns. The last year has been no... Posted Aug 22 2008, 03:00 PM by admin with | with no comments Filed under: Variable Annuity Watch

• Recognizing the Different Annuities

  By Scott Burns Q. I would like to know the difference between a variable annuity and a life annuity. A few years ago I invested $100,000 in a tax-deferred variable annuity. Later, I came to know there is a surrender charge for 7 years. Is a life annuity... Posted Aug 20 2008, 03:00 PM by admin with | with 1 comment(s) Filed under: Q&A (from print), Variable Annuity Watch

• Immediate Annuities Can Be a Useful Tool

  By Scott Burns Q. I wonder if single-premium immediate annuities (SPIAs) are for me. I am 75. My wife is 73. We have no debt, $850,000 in IRAs (mostly in the American Fund family) and $150,000 in a ROTH, again with American. We also have $150,000 in CDs... Posted May 14 2008, 03:00 PM by admin with | with 6 comment(s) Filed under: Q&A (from print), Variable Annuity Watch

• Magic in Finance, Part 3: Equity-Indexed Life Insurance

  by Scott Burns Douglas R. Andrew has a new book out. "The Last Chance Millionaire: It's Not Too Late to Become Wealthy" was published in June. It is a continuation of the saga that began with "Missed Fortune" (2002) and "Missed... Posted Nov 09 2007, 03:00 PM by admin with | with 3 comment(s) Filed under: Retirement, Variable Annuity Watch

• Variable Annuity Watch, 2007

  For returns, they’re still not worth shooting. But there is an inkling of hope. The subject is variable annuities. Yes, it’s time for an update of my annual Variable Annuity Watch. This year the purchase of a simple broad index fund has again beaten a... Posted Jul 19 2007, 04:30 PM by scottb with | with 4 comment(s) Filed under: Variable Annuity Watch

• Sales Commissions versus Reality

  The most heavily marketed insurance product, the equity index annuity, is becoming the most litigated insurance product. Attorneys general in several states have filed suits against a number of EIA vendors. In addition, there are now four class action... Posted Jun 03 2007, 12:00 AM by scottb with | with 3 comment(s) Filed under: Variable Annuity Watch

• It's Important to Know Your Tax Bracket

  Q. We have three variable annuities that have matured. We have been advised to consolidate (total of $325,000) to one variable annuity. First, how can we get out of these annuities with minimum tax consequence? If we have to start a new annuity, should... Posted May 02 2007, 06:00 PM by scottb with | with 7 comment(s) Filed under: Q&A (from print), Variable Annuity Watch

• Equity-Indexed Annuities: Long on Sizzle, Short on Steak

  Are equity-indexed annuities a good investment? That's one of the top five questions in my mail bag these days. Thousands of people attend free dinners and lunches every week to learn about the miracle investment that will give them near stock market... Posted Apr 14 2007, 06:00 PM by scottb with | with 4 comment(s) Filed under: Variable Annuity Watch

• Don't Grieve Over Not Maxing-Out Plan Contributions

  Q. I am a 49-year-old engineer working at a large consulting firm. Our company has a high percentage of highly compensated employees and has limited pre tax contributions to 9 percent of gross income. In my case, this is $4,000 short of the allowable... Posted Apr 11 2007, 06:00 PM by scottb with | with 1 comment(s) Filed under: Financial Planning, Q&A (from print), Variable Annuity Watch

• A Tough Decision about a Variable Annuity

  Q. We have an annuity with John Hancock. In the nearly seven years we have had it, we have received no dividends from it. It is divided into 47 percent T. Rowe Price Equity Income, 12 percent T. Rowe Price Blue Chip Growth, and two other funds. We contributed... Posted Mar 07 2007, 06:00 PM by scottb with | with 4 comment(s) Filed under: Q&A (from print), Variable Annuity Watch

• Annuities: Some Are Useful, Some Not.

  Q. In a recent column you said that "one of the best ways to deal with uncertainty is to turn a portion of your portfolio into a life annuity." But in the next Q&A you said, as you often do, to run fast from annuities. Why the advice to buy in the first... Posted Jan 17 2007, 06:00 PM by scottb with | with 8 comment(s) Filed under: Burns at Large, Q&A (from print), Variable Annuity Watch

• Take More From Your Nest Egg As You Age

  Q: You have often cautioned against withdrawing more than 5 percent a year from retirement funds. Would you modify this rule of thumb for someone who retires later, such as age 75 or 80? In the case of required minimum distributions from IRAs, a person... Posted Dec 13 2006, 06:00 PM by scottb with | with 8 comment(s) Filed under: Q&A (from print), Retirement, Variable Annuity Watch

• How to exit a variable annuity

  If you deliver bad news, you should also deliver remedies. That's the message I got from readers about my recent column showing that variable annuities did poorly when measured against a simple, low-cost, and flexible index fund investment. Reader Bill... Posted Aug 01 2006, 04:23 PM by scottb with | with 2 comment(s) Filed under: Variable Annuity Watch

• Index Fund Wins Race Against Variable Annuity Stable

  The enthusiasm of the sales force continues. But the investing public is having second thoughts. Yep, you guessed it.The topic is my favorite useless investment product: the variable annuity. According to the National Association of Variable Annuities... Posted Jul 09 2006, 11:19 AM by scottb with | with 1 comment(s) Filed under: Index & ETF Investing, Variable Annuity Watch

• You Know You Are Rich When...

  Q. Your recent series on financial planning was interesting, but I still don't know the answer in my own case: "How much is enough?" I'm always trying to find the answer. What are your thoughts on this? ---B.S., by email from 940 A. My all-time favorite... Posted Jun 01 2006, 10:53 AM by scottb with | with no comments Filed under: Financial Planning, Q&A (from print), Variable Annuity Watch