Another tax problem is that when you take withdrawals or annuitize it, the earnings are taxed as regular income.

FORBES: Are Variable Annuities a Good Deal or a Ripoff?

In addition to impressive earnings growth, Hershey pays a regular quarterly dividend of 42 cents per share, representing an annual dividend yield of 2.3%.

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But if you would have invested in a regular stock mutual fund, a lot of those earnings would have been taxed at the lower capital gains rate (currently 0-15%).

FORBES: Are Variable Annuities a Good Deal or a Ripoff?