Who Should Purchase A Variable Annuity?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaThe suitability of an individual to purchase a variable annuity should be determined by the licensed variable annuity agent before the plan is proposed. Typically, the individual who purchases a variable annuity is one that wants a “hands-on” experience. While there are many risk factors to consider a desire to have money in specific investment groups would also be a reason to purchase a variable annuity.Answered on August 21, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! Annuities can be a great part of a retirement plan, but they aren't suited for everyone, because of the type of investment that they are. Before an agent can legally sell you an annuity, they have to do a "suitability analysis". In this analysis, we sit down and discuss your current financial status, your cash flow issues, and your tolerance for risk, among other things. If you are financially suited for the purchase of an annuity, it is often the risk tolerance that determines which type of annuity is best for you. If you have a very low tolerance, then a variable annuity would not be a suitable annuity for you, while a fixed annuity probably would be. If you had a moderate risk tolerance, but an aversion to losing money, the variable annuity again might not be suitable for you, but an indexed one might be. If you have a high risk tolerance, and like to play the market, and keep involved in the transactions, then this may be the annuity for you. I hope that answers your question, please feel free to drop me a line if you'd like more details, ok? Thanks for asking!Answered on August 21, 2014flag this answer
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