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.
About Philip Richardson
Philip proudly founded The Richardson Group over twenty years ago. His primary focus is to protect your savings and to take the confusion out of investing, with approachable steps. He is a well-known speaker, bringing a unique view to the financial world you won't get from most advisors. Philip is also a radio host with a weekly show discussing how to implement the strategies he recommends to seniors.
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Articles by Philip Richardson
How to prepare for the next stock market crash.
“The need for guarantees, lifetime income, safety, and safety make choosing the right plane essential” Philip Richardson An annuity is a type of contract offered by insurance companies. When someone buys an annuity, they are, in most cases, contracting to exchange a lump sum of cash gain a guaranteed monthly income. Social Security, which forms […]
If you use an IRS approved 1035 exchange you may exchange your contract for a new annuity contract within your current company or you can exchange your annuity contract for a new contract in a new company. If done properly, this exchange will not incur a tax liability, your deferred earned interest will remain deferred in the new contract.
Volatility is what drives the stock market, it changes. As it changes, opportunities exist to make money whether betting on a movement up or a movement down of the market. All that is needed to make the stock market work is volatility and what drives volatility?