What is the difference between a fixed deferred annuity and a variable deferred annuity?
Fixed annuities generally offer lower risk and lower growth potential, while variable annuities can offer greater growth potential in return for increased risk. Fixed annuities generally offer lower risk and lower growth potential, while variable annuities can offer greater growth potential in return for increased risk.Variable annuities offer more growth potential in return for a higher level of risk. Variable annuities can offer investment choice and flexibility through a variety of professionally-managed investment portfolios. These portfolios generally include stock and bond portfolios, ranging from conservative to aggressive risk levels. The value of a variable annuity will fluctuate, depending on how the investment options perform.
