A variable annuity is an investment product that combines insurance protection with the potential for tax-deferred growth of portfolio investments. These annuities provide a source of income usually created through the payment of premiums for an agreed upon period of time. Depending on the particular annuity, the investor can select from a variety of portfolio options that best fit toward their current financial goals.<\/p>\n
Variable annuities are an effective way for investors to defer taxes on their growth potential. The insurance company assumes responsibility when market conditions cause a decline in the value of the portfolio, allowing the investments to grow inside the annuity account, tax-deferred until funds are withdrawn. Subsequently, an investor has increased savings potential from their contributions. <\/p>\n
For investors in higher tax brackets, variable annuities also provide potential tax deductions, which can cut the tax bill significantly. Depending on the needs of an investor, variable annuities offer \u201criders\u201d that guarantee a minimum return or other features such as long-term care insurance which can help ease the cost of retirement. However, investors should be aware of fees and charges associated with the annuity, as these can take a bite out of your overall returns.<\/p>\n
Variable annuities are an effective way for investors to generate retirement income. With the variety of options available, investors can choose the investment strategy that works best for their current financial goals. But with any investment, research should be done before investing to ensure the fees and charges associated with the investment are in line with the investor’s goals.<\/p>\n","protected":false},"excerpt":{"rendered":"
A variable annuity is an investment product that combines insurance protection with the potential for tax-deferred growth of portfolio investments. These annuities provide a source of income usually created through the payment of premiums for an agreed upon period of time. Depending on the particular annuity, the investor can select from a variety of portfolio […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1784","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n