Beginners guide to variable annuities. This guide covers the basics of variable annuity features, benefits, definitions and common indexed annuity terms.
Variable Annuities all have common features which distinguish them from all other types of annuities. Features such as a market tied rate of return.
Varible Annuities often offer the possibility of higher returns and greater income that fixed annuities, but there's also a risk that the account will fall in value.
Variable annuities have many advantages, however there are also disadvantages. The most common disadvantages include a lack of a guarentee on your money.
With Immediate Variable Annuities, you pay a lump sum to an insurance company and immediately start receiving monthly payments. Payments may go up or down.
Questions you will want to ask your financial planner so you are clear on the advantages and disadvantages of Variable Annuities based on your investment goals and risk tolerance.