If you keep up with our blogs, you have recently learned a little bit about variable annuities. We very briefly discussed what a 
variable annuity is, as well as some of the advantages to investing in a variable annuity. However, this isn’t always enough information to make an educated decision regarding whether or not a variable annuity is something in which you want to invest. Just as there are advantages and disadvantages that come with any other investment, there are also advantages and disadvantages that come with investing in a variable annuity. We are going take a look at some of the pros and cons of investing in variable annuities so Florida residents can get a better idea of whether or not this should be a viable option for their retirement years.
Advantages
One of the major benefits of investing in a variable annuity over a fixed annuity is the greater variety of investment choices that are available to you.
It is possible to have guaranteed death benefits regardless of how well your investment performed. However, this is only applicable with certain contracts.
Taxation on your investment growth income is deferred.
You can use the accumulated value of your account as a steady stream of income.
You can move account values from one account within your annuity to another without any tax consequences.
Disadvantages
Generally, there are higher fees and expenses that are associated with variable annuities. These are most commonly due to insurance, as well as contract fees.
If you have guaranteed death benefits, there are different mortality charges associated with it that ultimately reduce your investment return.
If you make any withdrawals before the age of 59 ½ they are subject to tax penalties, as well as income tax on the earnings.
Contact us today to learn more about variable annuities and find out if they are right for you.