How Does a Variable Annuity Work?

You’ve probably heard of a variable annuity but don’t know how it works or earns money, right?  A variable annuity is an investment account where your earnings vary based on the type of investment you have. But what’s really the purpose of having a variable annuity? Is it a good way to invest as part of your retirement plan?In this episode of the Secure Your Retirement podcast, we educate you on how variable annuity works and if it makes sense for you. We share the pros and cons to keep in mind before considering variable annuity as an investment option for you.In this episode, find out:How immediate and fixed annuities work and the two types of a fixed annuity Understanding variable annuity and how it varies according to your investment structureHow variable annuity limits your investment choices around the insurance companyWhy you’re subject to market risk with the variable annuityWhy you should be aware of the variable annuity fees and their functionsWhy tax deferral advantages should be the only reason you use a variable annuityTweetable Quotes:“Your account is the variable annuity and then your sub-accounts are the investments within the variable annuity.”- Murs Tariq“If I have somebody who has a sizable amount of money that’s not in an IRA and they don’t want to the pay taxes each year on their earnings, they could use a variable annuity.”- Radon StancilResources:If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!To access the course, simply visit POMWealth.net/podcast.To receive our free book, Get Off the Retirement Rollercoaster, leave a 5-star rating review on Apple Podcasts and send a screenshot to [email protected].