If you qualify for an IRA deduction, consider funding your IRA with a variable annuity, which will provide the benefits of both. If the annuity funds an IRA, IRA rules apply. The historical performance of the underlying portfolios, while not a guarantee of future results, should tell how well the annuity's investment manager has done in both positive and adverse markets. This is more important to the growth potential of your investment than any short-term figures. Fees and charges should be carefully reviewed.
Some annuities have a surrender charge that declines over a number of years.
Others maintain a high charge for a stated period of time. Be sure to look at annual administration fees and asset charges, and find out if the insurance company charges for transfers among the portfolios. It's important that you understand the fees before you purchase your annuity. The soundness of the insurance company is important. Your Financial Advisor can review your circumstances to determine what type of annuity is best for you.