Fixed vs. Variable Annuities (Which One Is Right For Me)

Fixed vs. Variable Annuities

The choice of fixed or variable annuity depends primarily on the specific needs of the investor.

A  fixed annuity is most appropriate for people who want to:

• Earn a fixed rate of interest without risk
• Save on contract expenses and management fees

A variable annuity is most appropriate for people who want to:

• Have the opportunity to make substantial gains, depending on the performance of your investments
• Respond to changing market conditions by transferring money to a different funding option within a variable annuity without paying taxes on any earnings you have made.

Proceeds from annuities are not subject to probate and may be passed directly to your designated beneficiary.