Submitted by Anonymous on
Very few people know what an annuity is.
Even fewer people know how annuities work.
Variable annuities are some of the most complex annuities because the optional living benefits create so many moving parts that are tough to understand.
Kudos to Vanguard for creating a simple, straightforward variable annuity.
There is a choice of 3 basic portfolios. One is balanced, one moderate and one conservative.
There is also an optional living benefit that is a guaranteed lifetime withdrawal benefit (GLWB).
Living benefits can be very complex. Vanguard's is pretty simple. It ranges from 4.5 percent to 6.5 percent based on your age if you are single. If you are married, it ranges from 4 to 6 percent based on age.
That's really about it. Simple, effective and inexpensive.
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