Variable annuities are a type of retirement savings vehicle that can help you reach your financial goals. They offer a variety of features and benefits that can help you reach your retirement goals, such as tax-deferred growth, a death benefit, and the ability to customize your investments.
A variable annuity is a contract between you and an insurance company. You make a lump sum payment or a series of payments, and the insurance company agrees to pay you a guaranteed income for life, or for a set period of time. The money you invest in the annuity is invested in a variety of investments, such as stocks, bonds, and mutual funds. The performance of these investments determines the amount of your return.
One of the main benefits of a variable annuity is the tax-deferred growth. This means that you don’t have to pay taxes on the earnings from your investments until you withdraw them. This can help you maximize your retirement savings and reach your financial goals faster.
Another benefit of a variable annuity is the death benefit. If you die before you start receiving payments from the annuity, your beneficiaries will receive the remaining balance of the annuity. This can help provide financial security for your loved ones.
Finally, variable annuities offer the flexibility to customize your investments. You can choose from a variety of investments, such as stocks, bonds, and mutual funds, and you can adjust your investments as your needs and goals change. This allows you to tailor your investments to meet your specific financial goals.
Variable annuities can be a great way to save for retirement and reach your financial goals. They offer tax-deferred growth, a death benefit, and the flexibility to customize your investments. If you’re looking for a way to save for retirement, a variable annuity may be the right choice for you.