Variable Annuities: Are the Benefits Worth the 4.2% Fee? (Case Study 2018)

Variable Annuities get a bad wrap. Is it deserved?

In this video, I explain a contract a client provided to me from Jackson National.

This contract has lots of bells and whistles. Unfortunately, those bells and whistles aren’t cheap. But just because the bells and whistles are costly that doesn’t mean they aren’t worth it.

So, let’s break down the costs. Total around 4.2% in this example. It could be more, too, if you add even more bells and whistles.

What do those costs cover? Income benefits and death benefits.

The income benefit provides you a certain percentage of income for your life. You can’t outlive it, even if the value of your portfolio drops to 0. Sounds good. But worth it???

Death benefit. When you die your heirs will get the greater of your initial contribution or the highest account value, less any withdrawals.

However, there is a fee, significant fee.

Worth it? Watch to find out.

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