RT Journal Article
SR Electronic
T1 An Analysis of Non-Qualified Tax-Deferred Annuities
JF The Journal of Investing
FD Institutional Investor Journals
SP 73
OP 85
DO 10.3905/joi.2000.319414
VO 9
IS 2
A1 William R Reichenstein
YR 2000
UL https://pm-research.com/content/9/2/73.abstract
AB For a range of projected bond and stocks returns and a range of investment horizons, this study compares projected after-tax retirement incomes from average-cost and low-cost non-qualified annuities and, respectively, a low-cost index fund and an average-cost mutual fund. It concludes that the average-cost annuity almost always provides less income than an index fund. For investment horizons shorter than twenty years, the annuity usually provides less income than an average-cost mutual fund. In short, the average annuity's costs exceed its benefits.