When Are Variable Annuities A Good Idea?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaProducts, in and of themselves, don’t present a good value or a bad value. Product suitability for each client is important. You need to establish a personal financial profile that includes a risk tolerance assessment, your financial goals and a life expectancy review. A non-qualified variable annuity is a security and an insurance product that accumulates tax deferred with a guaranteed interest rate account and separate sub accounts with using equities and bonds. Variable annuities are generally expensive, so the value proposition has been called into question by many advisers. The inventory of variable annuities is significant and you may want to review the Morning Star reports on any variable annuity you may be considering. Variable annuities can lose money, so make sure your risk tolerance fits the product.Answered on June 29, 2013+01+1 this answer
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1976 POINTSview profileRonald HinchRegional Marketing Director, Capital Choice Financial Group,Variable annuities can be a very good investment offering more safety than direct investing in mutual funds. They are insurance products where and investment is wrapped inside an annuity. They do provide the opportunity for a higher rate of return than the interest paid by fixed annuities in return for more volatility. So, they are not for everybody but remain a great investment option.Answered on April 12, 2016flag this answer
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