When Are IRA's best placed in a Variable Annuity?

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I have searched and did not see this topic in our archives.

Am meeting w/ an advisor about options for my paltry 125k IRA. She has hinted that a variable annuity with Jackson National Life Insurance Company, Perspective II family of funds would be a good place to go.

Do most advisors charge around 1.5% of your total annually to manage an account? This is a big decision - and I am reseraching the company and the annuity/IRA thing. I want to know WHY an annuity is a good idea for an IRA. The fund also charges expenses, of course.

Will think over the info I get tomorrow - no snap decisions for me. I thought someone here may have been down this road already.

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There is NEVER a reason to put a variable annunity in an IRA. This is a sucker investment. The "advisor" wants to generate a high commision. You are paying twice as many fees because you are putting a tax deferred investment in a tax deffered investment (IRA). Call Fidelity, Vanguard or T. Rowe price immediately. These mutual fund companies will give you good ideas.

Yeah, to echo what was said, I'm not sure how this could possibly makes sense. This guy is just trying to make a fast buck and big comission off of you. I wouldn't do it.

fire your advisor. she does not have your best interests at heart.

About the 1.5% annual management fee - for comparison you could put your $125k into a total market index fund at Fidelity and pay 0.07% per year.

When Are IRA's best placed in a Variable Annuity?

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