Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: Hello everyone, I'm Steve Savant, syndicated financial columnist and host of the weekly online talk show Steve Savant's Money The Name of The Game. I'm answering questions from insurancelibrary.com and today's question is: is a variable annuity a good investment? Well remember, this is a market driven product, so the first thing you need to do is take a risk tolerance test. After you take the test and you turn out to be a conservative or even a conservative moderate kind of investor, you may not want to do this product. It has market risk, but it also has market potential. They have expense loads that you need to look at and see if the fees that are inside those contracts are worth doing.
Remember, a variable annuity is going to be able to accumulate tax deferred and there could be income riders on which probably will cost you a little bit to play. There will be income riders that could generate guaranteed income for life depending upon if you elect to pay for it or not. Again, remember this is a long haul instrument. It has market risk. You could lose your money. Remember to always take the risk tolerance test for a product like this before purchasing.
Well, that's our consumer question for today. If you have any questions just submit them to www.insurancelibrary.com.
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Video Transcript: Hello everyone, I'm Steve Savant, syndicated financial columnist and host of the weekly online talk show Steve Savant's Money The Name of The Game. I'm answering questions from insurancelibrary.com and today's question is: is a variable annuity a good investment? Well remember, this is a market driven product, so the first thing you need to do is take a risk tolerance test. After you take the test and you turn out to be a conservative or even a conservative moderate kind of investor, you may not want to do this product. It has market risk, but it also has market potential. They have expense loads that you need to look at and see if the fees that are inside those contracts are worth doing.
Remember, a variable annuity is going to be able to accumulate tax deferred and there could be income riders on which probably will cost you a little bit to play. There will be income riders that could generate guaranteed income for life depending upon if you elect to pay for it or not. Again, remember this is a long haul instrument. It has market risk. You could lose your money. Remember to always take the risk tolerance test for a product like this before purchasing.
Well, that's our consumer question for today. If you have any questions just submit them to www.insurancelibrary.com.