Variable Annuity

Thus there is no need to pay tax on the income generated from a variable annuity contract unless one wants to withdraw the money.

Variable annuity. What is a Variable Annuity. Variable annuities are not suitable for short-term financial goals. The income from the variable annuity is tax-deferred.

A variable annuity is an insurance company product designed to allow you to accumulate retirement savings. A variable annuity is a type of annuity that can rise or fall in value based on the performance of its underlying investment portfolio. This is a general description of variable annuitieswhat.

Variable annuities have become a part of the retirement and investment plans of many Americans. A variable annuity you should know some of the basics and be prepared to ask your insurance agent broker finan-cial planner or other financial professional lots of ques-tions about whether a variable annuity is right for you. You may have the ability select a predetermined portfolio that aligns with your risk tolerance time horizon and investment.

Specifically it serves as an investment account that grows on a tax-deferred basis. Variable annuities are subject to market risk including the possible loss of principal. It serves as an investment account that may grow on a tax-deferred basis and includes certain insurance features such as the ability to turn your account into a stream of periodic payments.

A variable annuity is a tax-deferred retirement vehicle that allows you to choose from a selection of investments and then pays you a level of income in retirement that is determined by the. While a variable annuity earns returns through investment performance a fixed annuity grows via a specific interest rate that the insurance company presets. As with most annuities a variable annuity is a contract between you and an insurance company.

One can easily modify the flow of the income when it comes to the variable annuity contract. Still penalties can be incurred for early withdrawals. Unlike any other investment your variable annuitys fees climb ever higher as your annuitys account values drop which makes recovering from market losses even harder.