How Do You Choose Between A Variable And Fixed Annuity?
Are you having trouble deciding what type of annuity you should invest in? Read the step by step guide below and you’ll gain a clear understanding of the advantages and disadvantages of each so you can decide which annuity will be right for you or your loved one. Understand the definitions. A fixed annuity provides fixed payments over a set period of time, whereas a variable annuity payments can vary based on the performance of the underlying investments. Decide what you’ll be using the money for. Is the money from the annuity going to be used to pay for basic retirement needs? In that case, you’ll want to be sure that your money is coming in, so a fixed annuity would be best. Are you going to be using the money as a supplement to other retirement income? In this case, you will want to maximize your returns over time, so a variable annuity may be better for you. Talk to a financial planner about your annuity options. You can have an idea of whether you want a fixed or variable annuity,
