Investing for the long-term can be a daunting task, especially when it comes to choosing the right investment vehicle. One option that is gaining in popularity is the variable annuity. Variable annuities offer a number of advantages for long-term investors, including tax deferral, potential for growth, and protection from market volatility.

Tax Deferral

One of the primary advantages of a variable annuity is the ability to defer taxes on any gains until the money is withdrawn. This can be a great benefit for long-term investors, as it allows them to reinvest their gains and potentially earn even more money over time. Additionally, the money in a variable annuity is not subject to capital gains taxes, which can be a significant savings for investors.

Potential for Growth

Variable annuities offer the potential for growth through a variety of investment options. Investors can choose from a range of stocks, bonds, and mutual funds, allowing them to tailor their investments to their individual goals and risk tolerance. Additionally, variable annuities often offer a variety of riders, such as death benefit riders, which can provide additional protection and potential for growth.

Protection from Market Volatility

Variable annuities also offer protection from market volatility. This is because the money in a variable annuity is not directly invested in the stock market. Instead, the money is invested in a variety of investment options, which can help to reduce the risk of losses due to market fluctuations. Additionally, some variable annuities offer a guaranteed minimum return, which can provide additional peace of mind for long-term investors.

Overall, variable annuities offer a number of advantages for long-term investors. They provide tax deferral, potential for growth, and protection from market volatility. For these reasons, variable annuities can be a great option for those looking to invest for the long-term.