NEW YORK ( TheStreet) -- A variable annuity, especially those with living benefit riders, can be a valuable tool in the retirement planning process. However, as with any investment, variable annuities are not suitable all the time, and do have some drawbacks.Today, many variable annuities provide a living benefit. One of the most popular benefits offered is a future guaranteed minimum withdrawal benefit, also referred to as a guaranteed minimum income stream, or guaranteed income for life benefit. And with that benefit comes the first common mistake:
5 Common Mistakes When Buying a Variable Annuity
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.