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How much you can earn from a variable annuity is determined by the performance of investments in those accounts. Fixed annuities: A fixed annuity guarantees a minimum rate of return. The rate can ...
Fixed annuities differ from variable annuities, which invest premium payments in equities, mutual funds or other variable investments. This is why the rate of return for these products can vary.
Fees: The fees associated with a variable annuity are higher than most annuities — and even other financial products — due to the underlying investments and more intricate contracts. You might ...
Trail commissions are most common in variable annuities while fixed annuities and fixed indexed annuities typically pay an up front commission. Some firms allow an investor to pick an annuity share class, which determines the salesperson's commission schedule. The main variables are the up-front commission and the trail commission.
An immediate retirement annuity is an annuity that is purchased in a single lump sum, and payments on it begin immediately (30 days to 12 months), after the entry into force of the contract (there is no accumulation phase). An immediate annuity is good for turning a large amount of money into a source of permanent income (some kind of pension).
Traditional fixed annuities pay interest on the premium contributed at a rate declared by the insurer in advance. Some traditional fixed annuities offer multiple years guaranteed at the same rate, while others will leave the insurance company with the ability to adjust the rate annually. This rate can never be less than the minimum guaranteed ...
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