Net dollars invested into variable annuities dropped nearly 50% in 2005 over the prior year, in what I hope is a sign that investors are finally wising up to the oppressive taxation, numbing complexity, and crushing costs associated with most of these products. Such annuities essentially wrap mutual funds inside (often-unneeded) life insurance, and expose investors to taxation at levels as high as 300%+ over those for more straightforward investments. Often pushed by armies of salespeople lured by big commissions, widespread instances of abusive sales practices have sparked crackdowns across the country.