No, I am not fond of variable annuities. They are an oversold product that preys on tax phobic investors. My lack of fondness for variable annuities did not develop from a deep childhood trauma involving insurance companies or their agents. It developed from years of reader letters demonstrating inappropriate sales. It developed from years of doing the math and finding that they don t make sense for the long term.
High expenses kill compounding.
This is an absolute fact. Compounding is the mother of all investment growth. That s what most people would call a material amount. It is material when you put the money in. It is material when you take the money out.