Fixed annuities are those that you are required to pay a fixed amount every month. These are the only type of annuities that you are guaranteed you will keep the money you have. Variable annuities are a little more flexible and allow for the possibility that your money could be depleted as well as the possibility that your money could increase. You can read about the differences between fixed and variable annuities here.
Variable annuities are much more flexible than fixed annuities because they allow for the possibility that your money may increase beyond the first payment. This is similar to taking a lump sum and saying, “Hey, if we get a better deal, we will definitely take this and invest it.
Fixed or variable annuities have something called a “terminal age,” which is the age at which the funds will be available to you. Basically the annuity will pay out only for the life of the person who created the annuity, so if you die in your 50s or 60s, you won’t have to worry about the money because it will go to your family.
The purpose of fixed- or variable- annuities is to cover your losses. You can call the company where you live and ask for the money. The company will provide you with a small amount of money to help cover your losses. The company will help you out by making it a little easier for you to use your money.
The most common problem with fixed- or variable-annuities is that if someone has a medical emergency and needs immediate medical attention from a doctor, their fixed- or variable- annuity will pay for their treatment. But because the company you work for is still providing the money, you can die and not get it. Variable-annuities can be very valuable to people considering buying stocks because they will pay off for you in the long run.
Variable-annuities don’t pay off (at least not in the “long run”). You may be able to earn up to a certain amount as your investment performance grows, but if you don’t meet your investment goals for the year, it will default to a fixed amount. If you don’t meet your goals, you will have to pay the difference.
Fixed-annuities are easy to understand. You invest the money on a fixed amount and expect to get it back if you don’t lose it. Variable-annuities are harder to understand, because they are essentially variable-interest rates. The amount you receive is based on the level of risk you assume and the performance of your investment. Variable-annuities are the only type of annuity that does not default to the investor’s investment goal.
These annuities seem to be the easiest to understand, but as with any investment, there is a time and a place for variable annuities. An investor can still receive a fixed-annuity with a high level of risk and still receive a return, or an investor can invest in a low-risk, low-performance annuity and still receive a return. We are in the high-risk, low-performance area.
Fixed annuities will have a lower level of risk than variable annuities. This can be beneficial for investors who want to use their fixed-annuity money for something more stable. For instance, we have a fund that invests in fixed annuities that have very high levels of risk. However, our fixed-annuities can be converted into a variable annuity with as much as 80% less risk than a variable annuity.
The key distinction here is the difference between low-risk and high-risk annuities. A low-risk annuity will have less risk than a high-risk annuity, such as the one we invest in. With a low-risk annuity, you can expect a higher return than with a higher-risk annuity.
