variable annuities
A variable annuity is a financial product sold by insurance companies that allows individuals to invest money for retirement. It combines features of investments and insurance. You contribute money, which is then invested in various funds, and the value can fluctuate based on market performance. Unlike fixed annuities, which provide guaranteed returns, variable annuities share the investment risk. They offer potential for growth, but also the possibility of loss. Additionally, they often come with tax advantages and options for guaranteed income in the future, making them a complex but potentially beneficial retirement tool.
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Variable annuities are investment products offered by insurance companies that combine aspects of insurance and investment. When you invest in a variable annuity, your money is placed into various investment options, like mutual funds, and its value can fluctuate based on market performance. They also provide a stream of income during retirement, typically after an accumulation phase. Variable annuities can offer tax-deferred growth and certain guarantees, but they often come with higher fees and can be complex. Understanding your investment choices and long-term goals is essential when considering a variable annuity.