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learn variable annuity basics in 2 minutes

Welcome to Professor Savings.com

We teach finance basics.

Hi, I’m you’re host today Rayfil Wong.

What is variable annuity basics?

Well, it’s a type of mutual fund with added insurance.

  Let’s say Jane is looking for investment for retirement.

  Jane decides on variable annuity.

During the accumulation phase,  Jane makes a payment and the fund are invested into

mutual funds, stocks, and bond, and money market.

Once Jane hits retirement and the total payout phase.

Total payment plus gain from sub account gives you the payout.

Annuity is designed to provide you with income after retirement.

Let’s reak it down into simple lingo.

Variable annuity provide investors with security of annuity plus potential returns from different  investments.

Compared to a fixed annuity which provide a certain guaranteed payout.

Wow, we just covered the basics.

Make sure you consult a financial advisor when shopping for annuity right for you.

 Please subscribe to our channel if you want to learn more on finance basics.

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