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Investing

Variable annuity explained

A great retirement option for the long-lived.

A variable annuity is another option if you are looking to support your retirement by investing in an annuity. However, these are not always the best choice for you, so you should definitely do your research before deciding whether or not you want a variable annuity. Before purchasing an annuity, you should make sure that you know exactly where your money is going and how much you’ll be getting back. The thing to remember with variable annuities is that the monthly or yearly payments that you will receive as you get older will change.

One of the biggest benefits of going with an annuity, or a variable annuity, is that you will not have to worry about living too long. Essentially, if you have a retirement fund, there is always a chance that you could live longer than your retirement fund lasts. This is not a possibility with a variable annuity, as you are guaranteed to receive payments from the insurance company for the rest of your life.

Depending on how much money you’re looking to put into the variable annuity, and where you would like to invest that money, there are many details that you’ll want to check. Therefore, before buying into any annuity plan, you should always talk to your insurance company, and find out exactly what every variable annuity plan entails.

You should also do some research before you decide which mutual fund you will be putting your money into. The reason for this is that there are a lot of different mutual funds out there, and it is difficult to find the right one for you if you do not know what you are looking for. Since this is your retirement plan, you should be putting your variable annuity funds into “safe” mutual funds that tend to perform well over time. Depending on the rates that your insurance company charges, however, you can change exactly what your variable annuity funds are invested in.

How much interest you will get back with each payment that is made to you should vary considerably from account to account. These factors depend on the insurance company you choose, how much money you put into the annuity to begin with, and whether or not you chose a regular variable annuity, or one that begins to pay immediately.