In an effort to give clients more flexibility and choices in retirement planning, Principal Financial Group has extended its variable …
What is a Variable Annuity?
A variable annuity is a contract between you and an insurance company. You open an account with funds typically earmarked for your retirement. The insurance company invests your money in a selection of mutual fund-like investments (called “sub-accounts”). Your account value can grow or shrink with the underlying investments, just like with a mutual fund (hence the term “variable”).
ANNUITY FYI’S TOP LOW COST ANNUITIES PICKS
|Vanguard Variable Annuity|
|Click Here for Complete List…|
FROM OUR BLOG
“With a variable annuity, you place your funds with an insurance company and then choose how the money will be invested. Your available investment options (called sub-accounts) are those funds that the insurance company has selected inside of their variable annuity. These fund sub-accounts typically range from conservative bond funds to aggressive stock funds in addition to asset allocation models.
In the bull markets of the ’80s, a new type of annuity contract allowed investors to participate in the debt and equity markets and enjoy the benefits of annuities at the same time. These vehicles, known as variable rate annuities because of the variability of the returns realized, began in 1952 as a funding vehicle for pension plans. Originally started by the Teachers Insurance and Annuities Association – College Retirement Equity Fund (TIAA-CREF), these vehicles became more popular after the Tax Reform Act of 1986 closed many of the other tax loopholes that were available to investors.
Since then, they’ve grown into a multibillion dollar industry that is now regulated by insurance and securities agencies such as FINRA and the SEC, as well as state insurance commissioners.
Variable annuities can vary wildly in their fund and benefit offerings as well as fees so be certain to contain a highly qualified financial advisor who specializes in all types of annuities prior to purchase.”
Thomas Burgess Hamlin, Financial Advisor
Annuity FYI Expert
ARTICLES & GUIDES
A Respected Scholar Says a Low-Cost Investment-Only VA May Make the Most Sense
It’s becoming as common as night following day. Sales of traditional…
Low-Cost Variable Annuities May Be Better than Traditional VAs for Some Investors
Despite declining sales in a see-saw stock market, traditional variable annuities are still the …
VA Sales Are Falling and Likely to Keep Falling
Sales of variable annuities, the most popular annuity, are likely to drop 15 to 20 percent in 2016 and an additional…
Recent Variable Annuity Innovations Provide Growth + Safety
At the moment, the VA business continues to sort itself out. While the aftershocks of the financial…
What Does It Mean to Annuitize a Variable Annuity?
The fundamental concept behind a variable annuity is that the account value can grow and shrink…
What No One Wants You To Know About Your Variable Annuity
Do you or anyone you know own a variable annuity that was purchased more than four years ago? If so they may own…
Top 10 Reasons to Purchase Retirement Variable Annuities
Annuity FYI has compiled what we believe to be the most compelling reasons for investors…