The Nation’s #1 Independent Resource for Variable Annuities
What are Variable Annuities?
Variable annuities are a type of financial product sold by insurance companies that mix saving and investing with insurance benefits. Variable annuities can help investors reach their investment objectives whether growth, an income stream, or both. Here’s a simple breakdown:
- Investment Choices: When you buy a variable annuity, you can put your money into different types of investments, like mutual funds. The value of your annuity will change based on how well these investments do.
- Insurance Benefits: Variable annuities also offer some insurance features. For example, if you pass away, your beneficiaries might get a guaranteed amount of money, even if your investments haven’t done well.
- Two Main Phases:
- Accumulation Phase: This is when you put money into the annuity. You can make one big payment or several smaller payments over time.
- Distribution Phase: After this phase, you start receiving payments from the annuity. These payments can be set up to last for a certain number of years or for the rest of your life.
- Fees: Variable annuities usually come with fees, such as charges for managing investments, administration costs, and penalties for taking out money too early.
- Taxes: The money you make from investments in a variable annuity grows without being taxed until you start taking money out.
In summary, variable annuities can help your money grow and provide some insurance benefits, but they can also have costs that you should be aware of.
Our mission is to seek out the very best annuities and annuity riders among the thousands of products in the marketplace, and give investors the expert resources necessary to make an informed annuity purchase.
