Pros And Cons Of Variable Annuities

You can however expect.

Pros and cons of variable annuities. The Cons of Variable Annuities. Variable annuities have administrative fees as well as mortality and expense risk fees. Although variable annuities carry the potential of higher returns than fixed annuities they dont offer a guaranteed payout.

It either works for you or it. Where there are pros there are often cons too. Payments from variable annuities can increase if the portfolio performs well and decrease if it loses money.

They also come with an extra benefit that you wont find with other products in this category. That supports my thought that variable annuities have specific uses for a small class of investors. Variable annuities can be expensive.

Buying an annuity can tie your money up maybe for the rest of your life. Depending on the insurance company and features selected the fees and expenses can be upwards of 3. Pros and Cons of Variable Annuities.

The only variable annuities whose living benefits dont limit your freedom to choose subaccounts are the Perspective suite of variable annuities from Jackson National Life Insurance Jackson - Protected Lifetime Income in Retirement. Variable annuities have fees for Mortality and Expense. While a variable annuity earns returns through investment performance a fixed annuity grows via a specific interest rate that the insurance company presets.

The money in them grows tax deferred. The money that you put into a variable annuity can be deferred for taxation purposes into the future. Variable Annuities Can Be Pricey.