The investment options in an annuity depend on the insurance company offering the product. The investment options are generally limited, however.
If you decided on a Fixed Annuity, the insurance company agrees to pay you a fixed percentage for a set period of time – the rest is completely handled by the company. Usually, this percentage is higher in the beginning (teaser rate), and might go down periodically.
A Variable Annuity, on the other hand, allows you to decide how to allocate your money between the “separate accounts” they offer, which are basically their institutional versions of mutual funds. However, you are responsible for all fluctuation of your purchased investments, and whether you gain or lose. They will typically offer help in creating an allocation, but their methods may be oversimplified.
For additional help, we encourage you to use the resources here at Tickeron.
Indexed annuities are another thing.
They are not variable products but do allow the investor to choose between several types of indexes in which they would like to participate, and they may also give investors a choice of how they would like to try to capture the gains in these indexes, such as point-to-point.
Indexed annuities have more moving parts and are harder to understand than many investment vehicles on the market, and we encourage you to find trustworthy help and to do your own research if you decide to use one.
What Payout Options Do I Have?
What are Tax Benefits of Annuities?
Yes, in fact this is what most people do. This is a very popular choice. Because IRAs receive the same tax treatment
Yes, generally speaking any person that has assets and liabilities needs a will. In the absence of a will, a deceased...
Income bonds are issued by companies and they will only pay a coupon or interest if the company generates adequate earnings
The Federal Home Loan Bank Act of 1932 established the FHL Bank system, which is a co-operative banking network
Capital structure gives a framework for a company’s makeup and how it finances its operations, because it includes...
Momentum investors usually have their own models for determining whether they think a price trend (to the upside or...
The Lehman Aggregate Bond Index is a broad bond index, widely considered the best total bond market index to track...
Based purely on statistics, the “best” performing stock ever between 1957 and 2007 was Phillip Morris (cigarette maker)
A bear put spread involves the use of two puts, one sold and one bought, at different strike prices
SIBOR is the primary interbank loan rate quoted in the Asian markets. SIBOR stands for Singapore Interbank Offered Rate