In our most recent blog, Fixed Annuities and Their Benefits, we discussed the benefits of investing a fixed annuity. A fixed annuity, however, is not the only type Variable Annuitiesof annuity that is available to you. Variable annuities are another annuity option to residents in Florida who are preparing for retirement. Variable annuities are much different from fixed annuities and they can get somewhat complicated. We are going to try to breakdown variable annuities so you can have an idea of whether or not this type of annuity is right for you.

What Is a Variable Annuity?
A variable annuity, just like any other annuity, is a contract between you and your insurance provider. However, this investment product is much different than a fixed annuity in that the account holder’s balance fluctuates with the stock market. With variable annuities, you choose your own investments from a group of pre-selected sub accounts. Your returns are dependent on how well your investments perform.

What Are the Benefits?
One of the main benefits of investing in a variable annuity is there is a greater potential for growth. If your investment groups are performing extremely well, this can potentially allow for your returns to grow more than they ever could with a fixed annuity. Variable annuities also offer rider benefits to investors. These rider benefits can offer guaranteed lifetime withdrawal benefits to protect you from investment risks.

We understand that it can be difficult to fully explain variable annuities in a short blog, however, we have highlighted the very basics. If you would like to learn more about variable annuities and find out if they are a good option for you, please do not hesitate to contact our team of annuity specialists.