What investment options do annuities have?
- What is an annuity?
- What are the different types of annuities?
- Are there tax benefits to annuities?
- What are the advantages of annuities?
- What are the disadvantages?
- Do all annuities have high fees?
- What investment options do annuities have?
- What payout options do I have?
- What if I decide to withdraw the money?
- How do I know if buying an annuity is right for me?
- Should I hold an annuity within my IRA?
- What happens to my annuity after I die?
- How do I know the company will honor my future payments?
- Should I exchange my existing annuity for a new one?
- What if I bought an annuity I no longer want?
It depends on which type of annuity you have. If you choose a fixed-rate annuity, you are not responsible for choosing the investments - the insurance company handles that job and agrees to pay you a pre-determined fixed return.
When you opt for a variable annuity, you decide how to invest your money in the sub-accounts (essentially mutual funds) offered within the annuity. The value of your account depends on the performance of the funds you choose. While a variable annuity has the benefit of tax-deferred growth, its annual expenses are likely to be much higher than the expenses on regular mutual funds - so ordinary funds may be a better option.
