Should I consider a variable annuity for retirement income?

@althea_dooley 

I'm not a financial advisor, but I can provide some information on variable annuities that may be helpful.

A variable annuity can be a retirement income option to consider, but it's important to thoroughly evaluate its pros and cons and determine if it aligns with your specific financial goals and circumstances.

Advantages:

1. Tax-Deferred Growth: Variable annuities offer tax-deferred growth, meaning you won't have to pay taxes on the investment gains until you start taking withdrawals in retirement.
2. Investment Options: Unlike traditional fixed annuities, variable annuities allow you to choose from a range of investment options. This flexibility can potentially provide higher returns compared to fixed annuities.
3. Guaranteed Income: Variable annuities can offer guaranteed lifetime income options, providing you with a stable income stream during retirement.

Disadvantages:

1. Fees and Expenses: Variable annuities often have high fees and expenses, including management fees and surrender charges. These costs can eat into your returns and affect the overall performance of the investment.
2. Market Risk: Since variable annuities are tied to investment options, they are subject to market fluctuations. If the underlying investments perform poorly, it can impact the value of your account.
3. Lack of Flexibility: Variable annuities usually have limited liquidity and withdrawal options. Withdrawing money before a specified age may incur penalties or surrender charges.

Before considering a variable annuity, it's highly recommended to consult with a certified financial planner or advisor who can assess your specific financial situation and goals. They can help determine if a variable annuity is a suitable option for your retirement income strategy.