Dearest Fossil (LOVE that handle!)
Just one comment on the 15-20 years to break even with annuities vs. mutual funds:
Put $100,000 into a VA, and $100,000 into a mutual fund
Assume a 10% return
Balance at year end - $110,000 in both accounts
Switch to money market to lock in gains (scared of the market or whatever...)and then switch back into the market
In the Variable Annuity, you reinvest $110,000 as long as the money remains in the annuity.
In the mutual fund, assume even a 10% tax bracket - you reinvest $109,000 because of the tax you pay on the gain.
Do this even once and tell me what will be better in the long term?
Just admit it - you LOVE variable annuities - have tons of assets in them and just want to get some perspective on them!