What Are Variable Annuities

The SEC regulates variable annuities.

What are variable annuities. As with most annuities a variable annuity is a contract between you and an insurance company. 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. You invest the funds in your variable annuity in one or more funds most of which are mutual funds that focus on specific areas of the market.

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 contract between you and an insurance company. A variable annuity is an annuity contract offering investors an opportunity to earn higher rates of return on their investments than what they can get with fixed annuities.

A variable annuity is a contract between you and an annuity provider usually an insurance company in which you purchase the ability to receive a stream of income for your life or a set period of time. A variable annuity is a type of annuity that is dependent on another financial entitys performance. Still penalties can be incurred for early withdrawals.

What Is a Variable Annuity. The money you pay is allocated to an investment portfolio. A variable annuity is a type of annuity that can rise or fall in value based on the performance of its underlying investment portfolio.

Annuities that turn into a stream of income immediately are called immediate annuities. A variable annuity is a contract with an insurance company that includes investments you choose and a fixed insurance component. Variable annuities allow investors to accelerate the growth of their holdings via the stock market gains during the accumulation phase potentially increasing their future income payments during.

While annuities that begin payouts at some point in the. Variable annuities are deferred annuity contracts that earn investment returns based on the performance of the investment portfolios known as subaccounts where you choose to put your money. An annuity is a financial contract that protects financial assets and provides a steady income stream.