A Myriad of Options

Tax-deferral is not the only reason why annuities have mushroomed in popularity. While they typically have maturity dates of 5-7 years, annuities require no medical exams, and can usually be opened by filling out a basic annuity contract.*

Today, there are hundreds of annuities to choose from, designed for different retirement goals. When it comes to fixed annuities, insurance companies sometimes offer higher intial rates to attract would-be buyers, while other companies promise consistent interest rates throughout the life of the annuity contract. Rates, maturity periods, and death benefits are just some of the options to look for in a fixed annuity.

Modern variable annuities also give you the option of directing how your money should be invested in separate accounts. These accounts are offered by some of the most respected money managers in the industry. Many mutual fund companies will also offer variable accounts that closely mirror their mutual funds in terms of performance, holdings and risk.

During the late 1980's, insurance companies began bundling more of these segregated accounts inside their variable annuity products. To remain competitive and increase brand awareness, well-known money managers began offering even more variable annuity accounts, in addition to their existing mutual funds.

You can find many of the most popular money managers in today's variable annuity.

When you own a variable annuity, you can tell the insurer which underlying accounts you would like to use. The value of the annuity contract will then vary depending on the performance of the separate accounts you chose.

These variable accounts may rise or fall in value. However, with variable annuities, you can invest in a number of different options without additional costs or transaction fees. Plus, many insurance companies will offer a death benefit that will never be lower than the amount you originally invested.

With today's variable annuity, you can tailor your retirement account to meet your own individual needs.

Did You Know...

Variable annuities are designed for long-term retirement. Mutual funds offer more liquidity, and may incur fewer fees due to added costs of insurance found in variable annuities.

Did You Know...

Unlike mutual funds, variable annuities typically offer a wide selection of accounts from many different money managers.