Annuities Explained

Annuities come in two varieties – Fixed and variable. A fixed annuity is somewhat like a CD, in that the insurance company issuing the annuity agrees to pay a fixed rate to the investor, while the investment, along with associated profit or loss, is also the company’s responsibility and right. The performance of the investment is not directly coupled to the returns the investor gets. The insurance company acts as a barrier between the index and the investor, minimizing the impact by siphoning off huge spikes in both profit and loss, while passing along stable returns to the investor.

By |2020-04-13T18:27:00+00:00April 11th, 2019|Annuities, Annuities 101|