Where Are Variable Annuities Invested?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   A tax deferred variable annuity has tow basic accounts: an interest rate account and separate subaccounts using equity and bond investments. Both accounts credit gain after the policy expenses have been paid. But separate sub accounts can also have market losses that are debited from the accounts. Product suitability and risk tolerance are important factors in considering variable annuities.

   Answered on August 18, 2013

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