Broker Check

Retirement Nest Egg Choices - Advantages & Disadvantages

| March 29, 2016
Share |
Retirement

 

Advantages

S

B

FIA

VA

Upside growth potential

Principal safety

Guaranteed (joint) lifetime income available

Guaranteed (joint) lifetime income available

Available very low expenses

Stable income

Guaranteed against market loss

Possible permanent raises during income phase

Liquid

Return of principal at maturity

Possible permanent raises during income phase

Lock in gains for income

Understand what you own

Liquid

Lock in gains for income

Upside potential

Track index

Safe - conservative - but not guaranteed

Access to your money
Return of Premium available

Access to your money

 

Disadvantages

S

B

FIA

VA

Potential market loss

Low current interest rates

Limited growth potential

Expensive

 

Little inflation protection

Upside limits: Caps,  participation rate

Growth reduced by expenses

 

Limited growth potential

Surrender charges limit access

Surrender charges limit access

 

Possible market loss before maturity

 

 

Share |