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At its core, a variable annuity is designed to provide a steady stream of income during retirement. But these financial products are more complex, costlier and riskier than other types of annuities .
Variable annuities can offer income in retirement and the potential for higher returns, but those perks come with trade-offs, including higher fees, limited liquidity and market risk.
Annuities share this characteristic with IRAs and 401(k)s, so the lesson here is that an annuity is a retirement savings vehicle instead of an all-purpose investment account. Limited Returns
Because rates of return for fixed annuities are guaranteed, they provide predictable and a steady stream of payments to add to your retirement fund. Fixed annuities pose little financial risk ...
Variable annuities allow for more growth but, like stocks, can lose value when the market declines. Similar to investments held within retirement plans, such as 401(k)s and IRAs, ...
Like any source of retirement income, annuities have their pros and cons. Understanding these can help you make an informed decision about whether an annuity is right for you. Advantages of ...
Variable annuity: You can get bigger future payments depending on whether the annuity fund does well, or smaller payments if it doesn't. It's riskier than a fixed annuity, but can have a higher ...
Here are five warning signs of a bad annuity. An annuity, which allows individuals to pay upfront or over time to receive a consistent income stream, is a popular source of retirement income for many.
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