How Do Annuities Earn Money?

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    David RacichPRO
    Fountain Hills, Arizona
    There are three basic types of crediting methods for non-qualified deferred annuities: fixed interest rate crediting, indices crediting and separate sub accounts using equities and bonds investments. The fixed interest rate crediting and indices crediting methods are used in non-security savings products. Separate sub accounts using equities and bonds investments may credit or debit from a variable annuity, which is a security investment product, based on its market performance. Variable annuities can lose money.
     
    Answered on July 2, 2013
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