Examine the different types of annuities and see if an annuity is the right fit for your retirement portfolio.
Variable annuities and fixed annuities are very different creatures. Fixed annuities earn a set rate of interest for a specific time period. Variable annuities invest your funds in separate accounts (sub accounts) that invest in securities such as stocks and bonds, etc. Each separate account will offer specific investment objectives, you select the accounts that will best help you reach your goal. Here are specific points to understand before investing in variable annuities.