The differences between Fixed Annuities and Variable Annuities
Fixed Annuities
Fixed annuities can be a valuable part of your retirement planning and are characterized by a minimum interest rate for a particular period of time that is guaranteed by the issuing insurance company. With a fixed annuity, the focus is on safety of principal and stable investment returns.
Variable Annuities
With a variable annuity, you have the flexibility to diversify among a combination of equity, fixed or bond subaccounts from various fund families offered by the annuity company. The cash value of your annuity can fluctuate based on the performance of your underlying portfolio.
There are many advantages of annuities, which may be a valuable part of your financial profile. With the help of a financial advisor, you can determine if an annuity is a suitable investment for you and your retirement planning.
- #1
-
what is the exact differences between fund?annuity and account?Janet · 11/15/2010 03:10:56
Or Start FREE 30-day trial now >>
