Finding a variable annuity that is sold by a broker (rather than bought by an investor) that has fees around 2% is almost impossible to find. The M&E Fees average 1.25%-1.4% and the average equity manager in a variable will charge more than 1%. Then you have brokerage commissions, internal brokerage fees, bid/ask spreads and potential market impact from hot money. Hmmm! 2% is next to impossible. Oh yes, we didn't even throw in the cost of riders for enhanced death benefits, Guaranteed Minimum Withdrawal Benefits or Guaranteed Minimum Income Benefits. Add all these up and one can be looking hard a 5% in fees. Look carefully before purchasing.