Wall Street Journal: “Long Derided, This Investment Now Looks Wise,” 2009-July-14
For years variable annuities were shunned for being too expensive, now they’re looking like they are a wise choice. Most annuities offer some form of investment guarantee for an additional fee. Because of such guarantees, many holders of variable annuities actually saw their accounts increase 6% or more in value last year, when the Standard & Poor’s 500-stock index dropped nearly 39%.
Baby boomers find these products to their liking. Features like the “living benefit” eliminate the fear of out-living their income.