Are You Dumping a Large Amount of Cash in an Equity Index or Variable Annuity? Think Twice!

At first glance, a variable annuity (VA) or equity index (EIA) annuity would seem like a sound investment. After all, you are told by the salesman that you could earn market-type returns instead of the stodgy, nominal returns on a Certificate of Deposit (CD) or fixed rate annuity (DA). Further, all gains are tax-deferred until you begin withdrawing the money at retirement age. You also get a limited guaranteed death benefit, at a cost. Like I said, everything sounds great so far.