How Are Variable Annuities Valued?

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    David RacichPRO
    Fountain Hills, Arizona
    Variable annuities use a general account for guaranteed interest and separate accounts for equity and bond instruments. There are charges and fees associated with variable annuities, like most security products. Those fees must be satisfied before the earnings, if any, are applied to the remaining cash values. Keep in mind that you could lose money, still pay fees and may be subject to surrender charges from liquidation.
    Answered on July 21, 2013
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