Variable annuity fee drag on tax deferral gains
The piece argues variable annuities fail to deliver after costs. Insurance charges of 1 percent to 1.25 percent erode the advantage of tax deferral, especially when stock markets average 10 to 11 percent. Morningstar data is cited to illustrate the fee impact.
Low-cost index funds beat high-cost variable annuities across periods
A comparison shows the Vanguard Total Market Index and Vanguard 500 Index outperforming variable annuity funds in 1, 3, 5, and 10 year returns. Over five years the index yields about 2.18 percent annually, while a 1.1 percent insurance wrapper would cut 50 percent of that return. The average domestic stock or balanced fund underperforms index funds across all four periods, and the worst case for the index still beats 20 percent of variable annuities.
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Gazette
Twinkies may return by summer after auction canceled
Hostess plans to sell Twinkies and other snacks after a $410 million stalking horse bid by Metropoulos Co and Apollo. No competing bids were submitted, so the auction was canceled. Metropoulos foresees shelves reopening by this summer. Wonder brands and Drake's cakes also change hands in the bankruptcy process.
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Branstad Blames Kochs Over 1.4 Billion Iowa Fertilizer Plant
Gov. Terry Branstad accuses the Koch brothers and party rivals of waging negative campaigns to derail the Orascom Industries fertilizer project in Lee County. He cites a federal fraud suit and GOP critics from Ames and Iowa City while touting potential 165 permanent jobs and 2,500 construction roles, plus substantial tax credits.
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Iowa
Lee County
Orascom Industries
Koch Brothers
Branstad
Fort Madison
Wichita Based Koch Industries
Charles
David Koch
Ames
Iowa City
Des Moines
Bolkcom
Debi Durham
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