Variable Annuities – What They are and How They Work
A variable annuity is radically different from a fixed or indexed annuity. There is more risk, and there is more potential upside as well. Here are some of the features of variable annuities: Variable annuities are sold through financial advisers and stock brokers. They are not sold by insurance agents. You can lose money with a variable annuity and there is no guarantee that you will make money. In fact you could even lose your principal investment. A variable annuity has lots of investment choices, you can allocate your money between as many as 40 investment choices (such as high growth stocks, value stocks, and corporate bonds).
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