Hi all,
I am considering the Vanguard Variable Annuity. Based on the funds I would select, fees would be a little under 43 basis points, on average.
Background: I am in a higher tax bracket. I max all normal tax advantaged accounts, 401K, IRA. I have a rental property with good cash flow. I have the cash in hand to acquire another rental property, like the good one I have, but still looking for the best deal. After this 2nd rental, I won't want much more real estate, based on what I want my asset allocation to look like. My emergency fund is full, and I also have a growing stock of assets in my taxable brokerage.
It seems like some voices within the conventional wisdom would suggest that a lower cost variable annuity would be a reasonable compounding vehicle at this point, given that my other options are filled up.
Based on my timing to FI, I would mostly be interested in the variable annuity if I can take SEPP from it. It's not totally clear to me that I can.
What do you think?
