Jumpline MAG_Sum_Fall 2025 - Flipbook - Page 11
Gary Gonzalez
MDFR Battalion Chief, Ret.
Variable Annuities Investment
11
Beware of the
Wolf in Sheep’s Clothing:
Variable Annuities
As 昀椀re昀椀ghters, we’re trained to recognize danger before it strikes—
smoke before 昀椀re, instability before
collapse. But when it comes to our hardearned retirement savings, there’s a danger that doesn’t come with sirens or 昀氀ashing lights: variable annuities.
On the surface, variable annuities are often sold
as a safe, guaranteed way to grow your retirement nest egg. Sales reps often pitch them as
having “guaranteed income for life,” tax-deferred
growth, and market upside. Sounds great, right?
That’s the “sheep’s clothing.” The reality lurking
beneath can be far less comforting.
High Fees That Burn
Most variable annuities come loaded with layers
of fees—mortality and expense charges, fund
management fees, and rider costs. It’s not uncommon for all the fees to add up to 3–4% annually. That’s money leaking from your future every
year, even in down markets. Over time, these
fees can eat into your returns like a slow-burning
昀椀re.
ment to a fellow 昀椀re昀椀ghter in plain English,
it’s probably too complicated—and not in
your best interest.
“Guarantees” With a Catch
Many of the
“guarantees” you
hear about in
annuity pitches
aren’t as solid as
they seem.
Many of the “guarantees” you hear about in annuity pitches aren’t as solid as they seem. Income guarantees can often depend on keeping
your money locked up for years, and if you need
access before a certain age or period of time,
surrender charges and tax penalties can hit hard.
The Bottom Line
You’ve worked too hard and risked too much to
fall prey to 昀氀ashy 昀椀nancial products with more
bark than bite. Before signing onto a variable
annuity, talk to a fee-only 昀椀duciary 昀椀nancial advisor—someone who doesn’t earn commissions
selling products. Get a second opinion, just like
you would take a second look before entering
a dangerous structure. Review the risks. Thoroughly recon all your retirement income options. Don’t let your 昀椀nancial future go up
in smoke.
As always, if you have any questions or concerns, feel free to contact me at Northstar Financial Planners, Inc., 954-693-0030, or on my cell,
954-804-5539.
Complex, Not Custom
The structure of a variable annuity is often so
complex that even seasoned 昀椀nancial pros need
time to decode it. For 昀椀re昀椀ghters used to clear
procedures and honest gear, this opacity should
raise red 昀氀ags. If you can’t explain the invest-
Until next time, be safe out there.
Gary Gonzalez
Summer/Fall 2025 | JUMPLINE Magazine
