Annuity companies issuing variable annuities allow annuity owners to invest in sub-accounts comprised of stock, bonds, mutual funds and money market accounts. The return on investment depends entirely on the market performance of the chosen sub-accounts. This means the annuity owner can gain or lose money just like they would in a stock or fund. Like other investments, selecting a higher risk sub-account may result in higher returns or high losses. Because growth is tax-deferred the growth in a variable annuity has the opportunity to grow at a much faster rate.
Asset allocation models are appropriate for investors who do not want to actively manage their annuity sub-account portfolio. If you decide to use a variable annuity consider your age, estimated time until you need use of the money, current financial stability, and tolerance for market volatility when selecting a risk profile. Be sure to understand the underlying sub-account options, along with their historical returns, just as you would view the performance history of an individual mutual fund prior to investing.
Below is a featured list of annuities to consider. If you prefer to speak directly with an Annuity Scene professional advisor to discuss the best immediate annuity for you, please call (877) 579-9574.
