Comments on: Insurers Raise Fees on Variable Annuities http://investing.curiouscatblog.net/2008/12/30/insurers-raise-fees-on-variable-annuities/ Wed, 20 Jul 2016 15:41:03 +0000 hourly 1 https://wordpress.org/?v=4.5.4 By: Will http://investing.curiouscatblog.net/2008/12/30/insurers-raise-fees-on-variable-annuities/comment-page-1/#comment-3944 Wed, 31 Dec 2008 14:10:04 +0000 http://investing.curiouscatblog.net/?p=392#comment-3944 The contracts all have fee information, including a “current fee” and a “maximum fee”. The companies cover the guarantees by using long-term hedging. In a market like this, the hedging gets substantially more expensive, and the companies have to pass a portion of the expense on to the consumer.

At the end of the day, the guarantee is still there. The customer still has a guaranteed income base that will generate retirment income for the rest of their lives. The cheapest ETF or index fund cannot provide that, nor can asset allocation. Some people have enough money where they don’t have to worry about where their next retirment paycheck will come from, and others find the guarantee — at almost any cost– more than worth the piece of mind.

No investment is suitable for everyone.

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