4. You need to shelter your savings from potential lawsuits and make it less accessible to the courts.
5. You feel up to making your own investment decisions, or alternatively, you have a financial advisor you can rely on.
6. You have already established a source of liquid assets that you could tap in case of an emergency. Remember, it will be costly if you ever need to withdraw money from an annuity before retirement.
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You'll probably want to avoid variable annuities if:
1. You have not yet fully funded any company-sponsored retirement plans or IRAs available to you.
2. The ups and downs of the stock market make you nervous and you are averse to the risks associated with mutual fund investing.
3. You know little or nothing about mutual fund investing and are not interested in learning.
4. There is a good chance you will need the money before retirement for living expenses, emergencies, long-term care or other investment opportunities you may want to pursue.
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