A variable annuity is similar to a 401k in some respects. You can choose which investments you would like to add into your portfolio. The premium can be divided with portions being used to fund several subaccounts that are diversified according to risk. These separate investments may include an ultra conservative money market fund, bonds, mutual funds, and more risky areas such as international equities. When purchasing these products, you have the choice of either making a full premium payment upfront or investing into the fund by making your payments over a set period of time.
You can typically expect the following features from a variable annuity: Continue reading ‘How a Variable Annuity Can Contribute to Your Retirement’ »