FYI: A friend of mine was pitched a variable annuity. He sent it over to me to take a look.
Before I get into the details of this product, I want to make clear two things: I am not an expert in this field, and there are more annuities than there are hedge funds. They all share some basic characteristics, but the devil is in the details.
This particular variable annuity was linked to the NASDAQ 100 and S&P 500 with specific caps to the upside and buffers to the downside.
This illustration shows a hypothetical deposit of $1,000,000 at the end of 1988. After the 10th year, the person could have pulled $222,987 out every year.
Regards,
Ted
https://theirrelevantinvestor.com/2019/04/25/are-annuities-really-so-terrible/
