About Variable Annuities A variable annuity has many things in common with its cousin, the fixed annuity. Both are usually initiated with lump-sum payments and offer monthly payouts. The bot also offers tax-deferred income options and tax-free accumulation of capital. But the “variable” component of the variable annuity is unique….
These investment vehicles are called “indexed” because they earn their returns based on an accepted major market index, like the S&P 500 or the Dow. There are advantages and disadvantages to having an annuity contract tied to a key market index. Contract owners can receive lower or higher returns based…
Fixed annuities are a contract between you and an insurance company that lets you build up capital in a tax-deferred manner. When the contract begins, you pay a lump sum to the insurance company and they agree, in writing, to pay a fixed rate of interest on the investment. At…