Page 14 - Know-So Money, Hope-So Money, Retirement Secrets Wall Street Doesn't Want You to Know

Now, however, tax deferral can be a real problem, because you are not

only deferring the taxes, but the tax rate as well. Variable annuities only
serve to exacerbate the problem because they effectively eliminate all of

the tax advantages of holding a long-term investment: long term capital

gains. So, you end up paying higher taxes on more money.

Here is a quote from Jane Bryant Quinn of Newsweek on variable

annuities: “You rarely find me so deeply angry at a common investment

product that I dream of blowing it to smithereens…. My target:
tax-deferred, variable annuities.

And, from John Biggs, former chair of TIAA-CREF pension funds, the
creator of VAs: "I cannot imagine a personal financial situation where
I'd recommend a VA (variable annuity) as a good idea."

In a nutshell, our objections to variable annuities are:

• High risk
• High fees
• High surrender charges
• Limited investment options

• Long surrender periods
• Elimination of long-term capital gains
• The need to add expensive riders to eliminate their core
problem—risky investments dressed up like safe money

instruments (Hope-So Money!).
Don’t get me wrong. I don’t hate the markets or risk. I own my own
Registered Investment Advisory firm, Coach Capital Management! I

just think your risk-growth money is better invested directly in the

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