Who Wins the Variable Annuity Versus Mutual Fund Battle?
By Dale Maley
()
About this ebook
This short story explores the issue of variable annuities versus stock index funds so ordinary investors can determine which option is best for helping to achieve their financial goals.
Dale Maley
Dale C. Maley is the author of the 19999 book Index Mutual Funds: How to Simplify Your Financial Life and Beat the Pros. He is also a contributing author to Chapter 18 Seeking Help from Professionals in the 2009 book The Bogleheads Guide to Retirement Planning. He is a very successful private investor who has been a student of Financial Planning and Investing for over 30 years. He was trained as an engineer at the University of Illinois and has been a practicing engineer for 32 years. His accomplishments as an engineer include the granting of 16 U.S. Patents and authorship of over 500 professional technical papers. He is also a member of the International Society of Automotive Engineers and the Society of Manufacturing Engineers. He also has earned an MBA (Masters Degree in Business Administration) degree from Illinois State University. His background in mathematics, engineering, and business provides him with the excellent basis for understanding and teaching investments and financial planning. He is also a very successful investor who has been investing in common stocks and mutual funds since 1980. He has also personally invested in both 401(K) and IRA plans, so he is familiar with participation and management of these types of investments. He has been investing in indexed common stock mutual funds since 1990. Dale became a Registered Financial Advisor in the State of Illinois in 2006 and is currently launching his business as a fee-only financial planner. He is President of Maley Financial Planning LLC.
Read more from Dale Maley
How to Build a Fascinating Ratcheting Wood Model Rating: 0 out of 5 stars0 ratingsHow Asset Allocation Can Help You Achieve Your Financial Goals Rating: 5 out of 5 stars5/5How to Use Psychology to Achieve Your Financial Goals Rating: 0 out of 5 stars0 ratingsWhat Is The Optimum Method to Convert a Retirement Portfolio Into Income? Rating: 0 out of 5 stars0 ratingsWhat are the Requirements for Becoming a Financial Planner? Rating: 0 out of 5 stars0 ratingsHow to Cut the Cost of Your Auto and Homeowner's Insurance Rating: 0 out of 5 stars0 ratingsShould Immediate Annuities Be a Tool in Your Retirement Planning Toolbox? Rating: 0 out of 5 stars0 ratingsWho Are The Bogleheads And Should You Become One? Rating: 0 out of 5 stars0 ratingsFinancial Planning for Medical Doctors Rating: 5 out of 5 stars5/5How Do I Maximize Retirement Income From My Portfolio? Rating: 0 out of 5 stars0 ratingsRules of Thumb or Retirement Planning Software? Rating: 0 out of 5 stars0 ratingsShould I Pay Off My Mortgage Early? Rating: 0 out of 5 stars0 ratingsIndex Mutual Funds: How to Simplify Your Financial Life and Beat the Pros Rating: 0 out of 5 stars0 ratingsHow Would Have a Low-Cost Index Fund Approach Worked During the Great Depression? Rating: 0 out of 5 stars0 ratingsHistory of Murders Committed in Fairbury, Illinois Rating: 0 out of 5 stars0 ratingsAre 529 Plans Really the Best Way to Save for College? Rating: 0 out of 5 stars0 ratingsHow to Find a Good Financial Planner Rating: 0 out of 5 stars0 ratingsHow Can I Retire If I Am 62 and Broke? Rating: 0 out of 5 stars0 ratingsHow Do I Estimate Retirement Living Expenses? Rating: 0 out of 5 stars0 ratingsDo I Need an Investment Policy Statement? Rating: 4 out of 5 stars4/5How Do I Design My Own Financial Plan? Rating: 0 out of 5 stars0 ratingsHow Do You Know When We Are In A Financial Bubble? Rating: 0 out of 5 stars0 ratingsHow to Save and Invest for Retirement Rating: 0 out of 5 stars0 ratingsDo I Need Long-Term Care Insurance? Rating: 0 out of 5 stars0 ratingsAre Black Swans Really Harmful to Ordinary Investors? Rating: 0 out of 5 stars0 ratingsBe Very Wary of Equity Indexed Annuities Rating: 0 out of 5 stars0 ratingsHow Much Income Do I Really Need in Retirement? Rating: 0 out of 5 stars0 ratingsShould Municipal Bonds be a Tool in Your Retirement Planning Toolbox? Rating: 0 out of 5 stars0 ratingsDo I Need Umbrella Insurance? Rating: 0 out of 5 stars0 ratings
Related to Who Wins the Variable Annuity Versus Mutual Fund Battle?
Related ebooks
Mutual Funds - The Mutual Fund Retirement Plan For Long - Term Wealth Building Rating: 0 out of 5 stars0 ratingsPortfolio Management - Part 2: Portfolio Management, #2 Rating: 5 out of 5 stars5/5How to Find a Good Financial Planner Rating: 0 out of 5 stars0 ratingsVariable Annuity Pros & Cons: Financial Freedom for Smart People Rating: 5 out of 5 stars5/5Financially Lit: How to Supersize Your Income Rating: 0 out of 5 stars0 ratingsDr. Ace's Guide to Personal and Financial Freedom Rating: 0 out of 5 stars0 ratingsMake Your Family Rich: Why to Replace Retirement Planning with Succession Planning Rating: 0 out of 5 stars0 ratingsHow to Know if Your Stockbroker Is Ripping You Off: And What You Can Do About It Rating: 0 out of 5 stars0 ratingsThe Obvious Solution: Custom-Designed Financial Peace of Mind Rating: 0 out of 5 stars0 ratingsThe Safest Way to Play it Safe While Still Growing Your Money Rating: 0 out of 5 stars0 ratingsWinning the Loser's Game, Fifth Edition: Timeless Strategies for Successful Investing Rating: 0 out of 5 stars0 ratingsBreaking Through The Wall: A Financial Advisor's Guide to Grow, Scale, and Monetize Your Business for Millions Rating: 0 out of 5 stars0 ratingsGet Wise to Your Advisor: How to Reach Your Investment Goals Without Getting Ripped Off Rating: 5 out of 5 stars5/5G2: Building the Next Generation Rating: 0 out of 5 stars0 ratingsNational Underwriter Sales Essentials (Life & Health): Prospecting Rating: 0 out of 5 stars0 ratingsAdvisor's Guide to Annuities, 5th Edition Rating: 0 out of 5 stars0 ratingsThe Humanity Factor: A Heart-Driven Approach to Your Finances and Your Future Rating: 0 out of 5 stars0 ratingsAmerican Fathers: A Tale of Intrigue, Inspiration, and the Entrepreneurial Spirit Rating: 0 out of 5 stars0 ratingsThe Team Edge Rating: 0 out of 5 stars0 ratingsThe Quiet Millionaire: How to Eliminate Debt and Build Wealth to Enjoy the Fullest Free Life of Your Dreams Rating: 0 out of 5 stars0 ratingsLife Changing Real Estate Secrets Rating: 0 out of 5 stars0 ratings101 Ways to Have a Business and a Life Rating: 0 out of 5 stars0 ratingsWomen of Wealth Rating: 0 out of 5 stars0 ratingsThe Best Practices Of Successful Financial Advisors Rating: 0 out of 5 stars0 ratingsASSET DEDICATION: How to Grow Wealthy with the Next Generation of Asset Allocation Rating: 4 out of 5 stars4/5Purposeful Wealth Management Rating: 0 out of 5 stars0 ratingsThe New Wealth Paradigm For Financial Freedom Rating: 0 out of 5 stars0 ratingsThe Billionaire Mindset: The Guide To Passive Income Rating: 0 out of 5 stars0 ratings
Personal Finance For You
The Psychology of Money: Timeless lessons on wealth, greed, and happiness Rating: 5 out of 5 stars5/5We Should All Be Millionaires: A Woman’s Guide to Earning More, Building Wealth, and Gaining Economic Power Rating: 4 out of 5 stars4/5The Millionaire Next Door Rating: 4 out of 5 stars4/5The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness Rating: 4 out of 5 stars4/5The Intelligent Investor, Rev. Ed: The Definitive Book on Value Investing Rating: 4 out of 5 stars4/5Set for Life: An All-Out Approach to Early Financial Freedom Rating: 4 out of 5 stars4/5Summary of The 48 Laws of Power by Robert Greene Rating: 4 out of 5 stars4/5Same as Ever: Timeless Lessons on Risk, Opportunity and Living a Good Life Rating: 4 out of 5 stars4/5Get the Hell Out of Debt: The Proven 3-Phase Method That Will Radically Shift Your Relationship to Money Rating: 5 out of 5 stars5/5Financial Feminist: Overcome the Patriarchy's Bullsh*t to Master Your Money and Build a Life You Love Rating: 5 out of 5 stars5/5Rich Dad Poor Dad Rating: 5 out of 5 stars5/5The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns Rating: 4 out of 5 stars4/5Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple Rating: 5 out of 5 stars5/5The Black Girl's Guide to Financial Freedom: Build Wealth, Retire Early, and Live the Life of Your Dreams Rating: 5 out of 5 stars5/5Summary of I Will Teach You To Be Rich: by Ramit Sethi | Includes Analysis Rating: 4 out of 5 stars4/5Investing For Dummies Rating: 4 out of 5 stars4/5Legal Loopholes: Credit Repair Tactics Exposed Rating: 4 out of 5 stars4/5The Money Answer Book Rating: 4 out of 5 stars4/5Die With Zero: Getting All You Can from Your Money and Your Life Rating: 4 out of 5 stars4/5Personal Finance For Dummies Rating: 4 out of 5 stars4/5Money Hacks: 275+ Ways to Decrease Spending, Increase Savings, and Make Your Money Work for You! Rating: 4 out of 5 stars4/5Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! Rating: 5 out of 5 stars5/5Rich Dad's Cashflow Quadrant Rating: 4 out of 5 stars4/5
Reviews for Who Wins the Variable Annuity Versus Mutual Fund Battle?
0 ratings0 reviews
Book preview
Who Wins the Variable Annuity Versus Mutual Fund Battle? - Dale Maley
Who Wins the Variable Annuity Versus Mutual Fund Battle?
by
Dale C. Maley
SMASHWORDS EDITION
* * * * *
PUBLISHED BY:
Artephius Publishing on Smashwords
Who Wins the Variable Annuity Versus Mutual Fund Battle?
Copyright © 2008 by Dale C. Maley
All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise) without the prior written permission of both the copyright owner and the above publisher of this book.
Q: What areas of investing have you been exploring since the publication of your book Index Mutual Funds: How to Simplify Your Financial Life and Beat the Pros?
A: The last few years I have been exploring all aspects of retirement planning. Variable annuities are one area that I really did not know much about. The popular press has vilified variable annuities to the point that most knowledgeable investors will not give them any consideration at all as an investment. Variable annuities are often sold to people who have fully funded their retirement accounts. The allure of variable annuities is their tax-free compounding until you cash them out. The downside of variable annuities is they are hard to understand, are loaded with fees, and you are taxed at ordinary income rates when you cash them in.
Another option for investors who have fully funded their retirement accounts is to invest in taxable indexed stock mutual funds. Because stock index funds are very tax efficient, you almost get tax-free compounding like a variable annuity. Index funds are extremely low cost and you are taxed at lower capital gains rates when you cash them in.
My goal is to further explore the issue of variable annuities versus stock index funds so ordinary investors can determine which option is best for helping to achieve their financial goals.
Q: What is a variable annuity?
A: There are many different types of annuities.