OK, but is this the right time to buy an immediate variable annuity? Annuitizing a variable product might be just the thing to do in today's market environment, says Scott Dauenhauer of Meridian Wealth Management in Laguna Hills, Calif. "I rarely annuitize [fixed annuities], especially in today's low interest-rate environment, but annuitizing on a variable isn't a bad idea with stocks so low."
We conclude, then, with the finding that now may be the time to consider the purchase of a variable annuity for your client's IRA, armed with the right guarantees and the intention that it provide lifetime income. Not convinced? Use our four-dimensional framework to decide whether your hesitation comes from a clear-headed analysis of the facts or a clinging to your biases of the past.
David J. Drucker, MBA, CFP ([email protected]), a fee-only financial advisor since 1981, is co-author of the book Virtual Office Tools for the High-Margin Practice (Bloomberg Press, 2002) and editor of the Virtual Office News newsletter.