Variable Annuities

What is a variable annuity?

The first thing to do is to learn the concept of an annuity. An annuity is a contractual insurance product that, as we said, are sold by financial institutions. The annuities are designed to provide a steady income for a period, therefore they are such an important...

What are its advantages?

Variable annuities are designed to give you a chance for long-term capital growth based in smart investments. By owning a variable annuity, you’ll be able to invest in anything you like, from half a dozen to twenty, or sub accounts that works like bond mutual funds....

What are its disadvantages?

Before buying a variable annuity, there are some drawbacks that you need to consider. For instance: The payouts will depend in the investments you choose, meaning: a higher investment risk. If the investments you make go down, your annuity will also go down, affecting...

When are variable annuities right for me?

If you want to control your investments and feel ready to do it, you may want to consider a variable annuity. It could also be a good alternative if you already reached the top of your contribution in your individual retirement accounts, which will also offer a tax...

Is a variable annuity a smart investment for my IRA?

This is a common move by sales agents, but generally is not the most convenient idea. One of the biggest benefits you get after buying an annuity is that your money will grow tax-deferred but you’re already get this benefit from Individual Retirement Accounts, so it...

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