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	<title>New answer on: Can Annuities Lose Money?</title>

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		<title>By: Jim Winkler</title>

		<link>https://insurancelibrary.com/annuities/can-annuities-lose-money</link>

		<dc:creator>Jim Winkler</dc:creator>

		<pubDate>Fri, 22 Aug 2014 00:03:55 +0000</pubDate>

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		<description><![CDATA[That is an excellent question! While your agent may be quick to assure you otherwise, it is possible to lose money on an annuity, but it&#039;s awfully tough to do. If you&#039;ve done your homework, and had a good agent, you will almost always come out ahead. You can lose money if: Your guaranteed interest rate is lower than the cost of inflation, and the cost of the fees on the annuity are unreasonably high; if you have a variable annuity without guarantees, and the market tanks like it did in 2008; and if the money that you invested in the annuity could have brought you a higher rate of return had it been invested elsewhere. If you&#039;ve done your homework and made sure that your annuity covered these bases, you should find yourself sitting on a healthy income stream for many years to come. I hope that helps, thanks for asking!]]></description>

		

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		<title>By: David Pipes</title>

		<link>https://insurancelibrary.com/annuities/can-annuities-lose-money</link>

		<dc:creator>David Pipes</dc:creator>

		<pubDate>Thu, 21 Aug 2014 21:12:10 +0000</pubDate>

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		<description><![CDATA[There are two basic types of annuities.  Fixed annuities offer guaranteed interest for the life of the contract.  Variable annuities offer accumulations and payments that vary with the performance of the underlying securities.  Variables can lose money.  In between there are “indexed” annuities.  Generally they offer a guaranteed interest rate, although it is often 0%.  In these plans you can participate in market expansion but need not take a loss when the market does. ]]></description>

		

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		<title>By: David Pipes</title>

		<link>https://insurancelibrary.com/annuities/can-annuities-lose-money</link>

		<dc:creator>David Pipes</dc:creator>

		<pubDate>Mon, 11 Aug 2014 21:19:41 +0000</pubDate>

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		<description><![CDATA[Annuities vary from the fixed annuities to the variable annuities.  Once you move out of the realm of fixed annuities you move into the possibility of losing money.  The investment in an annuity is still considered very secure; however, fees and losses could erode capital over time.  When you get to the variable annuities their performance is a direct reflection not only of the stock market but in particular those funds that you select. ]]></description>

		

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		<title>By: Jim Winkler</title>

		<link>https://insurancelibrary.com/annuities/can-annuities-lose-money</link>

		<dc:creator>Jim Winkler</dc:creator>

		<pubDate>Mon, 11 Aug 2014 00:12:21 +0000</pubDate>

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		<description><![CDATA[That is an excellent question! In most cases the answer will be no, if you&#039;ve been careful and chosen well with your annuity. If the interest rates and income riders will guarantee growth above inflation, it&#039;s tough to lose money, especially if you end up in a lower tax bracket when you collect, and the tax burden isn&#039;t bad. You can lose money if the interest rate is too low, or you do not have guaranteed floors, or you pull money out during the surrender period. You can lose money if the return is not approximate to what you could have gotten if the money had been invested in a different vehicle that returned higher. It is really vital with any investment that you sit down and discuss it thoroughly with a knowledgeable advisor before making the investment, whatever it may be. But many annuity products out there are great options, and very safe investments. I hope that helps, thanks for asking!]]></description>

		

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		<title>By: Steve Savant</title>

		<link>https://insurancelibrary.com/annuities/can-annuities-lose-money</link>

		<dc:creator>Steve Savant</dc:creator>

		<pubDate>Sat, 14 Sep 2013 04:12:15 +0000</pubDate>

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		<description><![CDATA[Tax deferred annuities have three basic crediting methods: interest rates, indices and separate sub accounts. Fixed interest rate annuities generally have s stated guaranteed interest rate. Indices do not debit the account in a negative, but policy expenses could create a negative return. Separate sub accounts are subject to the market volatility and can lose money.]]></description>

		

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