MONEY-SAVING MOMENT: Considering a variable annuity? You might want to think again. New research shows that it takes $100,000 in a variable annuity to generate the same income as $60,000 in an immediate payout annuity.

Variable annuities are sold by insurance salespeople as "can't lose" investments. They're getting another boost in popularity right now because of people's fears about the recent stock market meltdown.

Syndicated financial writer Scott Burns recently took an in-depth look at variable annuities. "This year, as with many preceding years, variable annuities are a good deal for insurance companies but a lousy deal for investors," Burns writes in his report.

Let's take one step back -- what exactly is a variable annuity? If you ask those who own them or want to buy them, they have no idea! Clark describes a variable annuity as a contract with the insurance company that masquerades as an investment with insurance wrapped around it.

Variable annuities come with huge sales commissions, huge expenses and a huge tax burden to you. And if you want out, you usually have to pay a massive fee known as a surrender charge.

Burns' analysis also contrasts variable annuities with index funds. Remember, index funds are usually sold commission free. No surprise then that index funds blow away variable annuities over 80 percent of the time.

And the coup de grace here is when Burns contrasts variable annuities with life annuities (aka immediate payout annuities). Insurance people hate to sell life annuities because they don't have big commissions. But as stated earlier, it takes $100,000 in a variable annuity to generate the same income for you as $60,000 in an immediate payout annuity. See Burns' article for an explanation of how he arrived at that calculation.

So when you're pitched on a 'can't lose' variable annuity, remember Clark's words and Burns' research.