| If you're planning your investments for retirement, | | | | does help you sleep better to know that you've |
| consider using variable annuities as part of your | | | | didn't put all your eggs in one basket. |
| retirement program. Variable annuities offer the | | | | Variable annuities offer some guarantees that might |
| diversification so necessary for a truly safe | | | | be perfect for the person that wants an income |
| retirement savings but also have some guarantees | | | | from their policy. The guarantees for these people |
| that may be perfect for your needs. Of course, like | | | | are the living benefits. Many of the companies offer |
| any good program, you don't necessarily make it the | | | | the living benefits for an additional fraction of a |
| only investment you use for retirement. However, | | | | percent of you account balance. |
| since each variable contains all the asset classes | | | | Some of the living benefits vary from a guaranteed |
| necessary for a balanced program, you'll find that | | | | return of your principal or higher, no matter what the |
| variable annuities are suitable for a large portion of | | | | market does or how your account fluctuates. Others |
| your retirement assets. | | | | guarantee that you'll always have a specific return, |
| Variable annuities often contain mutual funds of all | | | | such as 5 to 7 percent, as long as you take a cash |
| types and from a variety of companies. Some of the | | | | stream no larger than that percentage. If you pull out |
| newer products also contain funds in various asset | | | | a lump sum, all guarantees of this type cancel. |
| categories including sector funds. Sector funds are | | | | The living benefits are perfect for specific situations. |
| specialty funds that target special sector in the | | | | If, however, you're one of the lucky people that |
| economy, such as technology or banking. Other | | | | don't need to use any of the assets in retirement |
| mutual funds also contain specialty funds like gold or | | | | but simply want to pass the funds to heirs, there are |
| precious metals. You can tell that there's a broad | | | | death benefit guarantees to add to policies. Death |
| selection from which to choose. | | | | benefit guarantees vary from a guaranteed return of |
| In today's economy, it's difficult to know whom to | | | | principal to a guaranteed growth percentage per |
| trust. It seems no matter how large the company, | | | | year. Like the living benefits, death benefit |
| they accept a bailout check from the government. | | | | guarantees cost a percentage of your contract value |
| That's one advantage of a variable annuity. While the | | | | on an annual basis. |
| company that sells the variable should have a strong | | | | As you can tell, variable annuities aren't simple |
| rating, the company doesn't invest the money in its | | | | contracts. In order to find the best one with the |
| general fund but with many different mutual fund | | | | appropriate provisions for your situation, it's important |
| companies. | | | | to talk to an annuity specialist or seek information |
| The diversification of the companies that hold your | | | | online. The selection is broad a varied, so don't sign |
| assets is another benefit of a variable annuity not | | | | up for the first policy you see. Take time to |
| found in mutual funds. The chances you losing your | | | | investigate this important asset. Variable annuities can |
| assets if of any of these companies sink is small | | | | be a huge benefit to your retirement years if you |
| since both insurance companies and security | | | | choose on that fits your situation. |
| companies have protection similar to the FDIC, but it | | | | |