Beware of variable annuities

These annuities are sold by financial “advisers” who basically are in the business of selling insurance and draining your assets with their annual fees. The money is untouchable for long periods (usually 7+ years) unless you pay stiff withdrawal penalties. And worse, many annuities do not have simple protection mechanisms to safeguard your nest egg in times like this. For example, a major big name firm’s annuities do not even offer CDs as an option if you want to protect your assets and get out of equities and bonds. Your only option is to cash out into a money fund which is NOT FDIC insured!! I trusted my adviser on variable annuities for years until I wised up and finally cashed out. These guys are lizards! Run like hell if your adviser pushes these plans. Better still, stay away from financial guys associated with big financial firms - stick with for fee advisers. I learned the hard way, but at least I got out of their clutches in time.

Heres what found with some help from my new friend ~ FDIC web site said:

FDIC Deposit Insurance Coverage

http://www.fdic.gov/news/news/financial/2008/fil08102a.html

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails.

FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.

FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs).

FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.

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