What Rate Of Return Does A Variable Annuity Pay?

1. 

   21750 POINTS

   view profile
   Jim Winkler

   CEO/Owner, Winkler Financial Group, Houston, Texas

   That is a great question! There are just about as many different variable annuity products out there as there are varieties of ice cream. And even more potential rates of return. You would really need to first understand that any variable annuity will offer several crediting options that will play a part in your return. Then understand that the performance of the underlying investments plays a part, and that the policy's floors, caps, participation rates and guarantees all factor in. Variable annuities can be a great investment, or a very bad one, if you don't understand how and why they work the way they do. Please consult a trusted agent or adviser before purchasing one of these products. If you are less risk tolerant, perhaps an indexed annuity might be a better product. They are tied to market performance, without the risk, and safer guarantees. Ask your agent or adviser to show you a couple of each to compare, okay? Thanks for asking!

   Answered on November 3, 2014

   flag this answer
Did you find these answers helpful?
Yes
No
Go!

Add Your Answer To This Question

You must be logged in to add your answer.