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Fixed vs. Variable Annuities. With a variable annuity, rather than your interest rate being fixed for the duration of the contract, the interest rate is variable, meaning it is dependent on an ...
Fixed: A fixed annuity guarantees you a minimum rate of return on your investment and will pay out over a fixed term. Variable: A variable annuity allows you to put your money into various ...
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 ...
Unlike traditional fixed annuities that offer a set rate of return, the value of a variable annuity is linked to the performance of underlying investments. You’ll pick from a menu of sub ...
A Fixed annuity enables fixing the rate of return for a predefined number of distribution periods or for life. Generally, fixed annuities are conservative insurance products as the rate of return is approximately equal to the rate of return that certificate of deposit (CD) would offer. [3] [4] Variable annuities operate in other ways.
Here’s a quick comparison of variable and fixed annuities: Variable Annuity. Fixed Annuity. Tax-deferred growth. Yes. Yes. Guaranteed rate of return. No. Yes. Value can grow based on investment ...
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