These funds are cheaper fee wise than normal annuities, offer potential upside growth of the equity markets, and you still have access to your money unlike a standard fixed annuity.
- The downside is they are designed to exhaust after a set period. Say you need retirement income for thirty years. The fund is designed to pay off in that time meaning you will have zero left at that point. If you life longer than that you will need to have other resources.
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