The Differences Between Fixed And Variable Annuities
Fixed Annuities vs. Variable Annuities
The differences between variable annuities and fixed annuities are significant. In a variable annuity, because your income or account value is based on the value of the stocks or bonds backing the annuity assets, the income and/or account values fluctuate.
When you read or hear about annuities in the media, most of the time the subject is VARIABLE annuities NOT FIXED annuities.
Unlike with fixed annuities, the variable annuity owner bears the investment risk . Therefore, variable annuities are considered investment securities and would be a “risk money place” for your money.
PLEASE NOTE: Variable Annuities ARE NOT CONSIDERED “Safe Money Products” because:
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