Are flexible variable annuities good?
On One Hand: The AdvantagesFlexible, variable annuities carry two advantages over other annuities. Flexible means that you can change the payout schedule, giving you access to more money when you need it. Variable means the rate of return can change, giving opportunity for greater profits when the market is good.On the Other: The DisadvantagesThe chief disadvantage of a variable annuity is that it may underperform in a rough market. Like most other investments, the opportunity for rapid growth is accompanied by the risk of low growth. The disadvantage of a flexible annuity is that it tends to be more expensive than a fixed annuity. The insurance company or investment house charges higher fees.Bottom LineWhether or not a flexible, variable annuity is good depends on your goals and needs. If you need flexibility and aren’t averse to taking on risk for the possibility of higher rewards, then it may be a good choice.
