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.
Investing in your 401k is absolutely crucial to your future financial security, and as such, it is important to know how hidden fees and other 401k provider practices can impact your investment. With investing, as in life, it is often the unexpected things that have the biggest impact. Keep reading to find out how certain aspects of typical 401k plans may impact you.
Only a fool would buy an annuity, right? Recently, a well-known financial columnist suggested that annuities were a “foolish” choice. He went on to make several points to build support for his position and to gain attention for himself. This person makes his living by being contrary, by suggesting the normal way of business is [...]
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.
There are numerous reasons for owning an annuity but the most often considered reason is using an annuity for income. Annuities possess a wonderful feature; an annuity will guarantee income for as long as a person wants, even for an entire lifetime. If you are considering exploring an annuity and are interested in getting an annuity quote, here are a few simple rules.
If you fully understood variable annuities you wouldn't consider owning one Don't take my word for it, read about then from the industry watchdog FINRA: http://www.finra.org/industry/variable-annuities Like all annuity options, variable annuity pros and cons drive the decision-making process. If you are considering the purchase of a variable or fixed annuity or if you already [...]
A guarantee or a guess, which would you choose? Guarantees or a future guess, which would you choose? Annuities are annuities. The term annuity, when used as a noun, can mean two entirely different products. According to Investopedia, the definition of an annuity is: An annuity is a contractual financial product sold by financial institutions [...]
What Your Broker Doesn’t Want You To Know About Variable Annuities Disclaimer: In the early part of my career, I was licensed to sell variable annuities; I no longer maintain my securities license. The article below is gleaned from a wide array of information available to anyone; all you need to know is where to [...]
Need a reason to add an annuity to your retirement portfolio? Here are 10. Annuities aren’t for everyone; you have seen me write about that often. But when you are putting together your “bedrock” foundation for your retirement plan, they can be essential to that planning. Think of layering, this about safety and security as [...]
A bank guarantees the deposit and interest on a bank CD, with a fixed interest annuity, the insurance company guarantees the product. There is one basic different between a bank CD and a fixed interest annuity, the tax liability on interest earned in a fixed interest annuity is deferred until the funds are touched or used. Interest rates can vary between states of residence and offerings from insurance companies.