ACCUMULATION VS DECUMULATION
Everyone's retirement goals and objectives are specific to their situation, but one thing is clear, no one wants to risk what they have for something they don't need. You worked too hard to gamble with all of your retirement savings. This is where a transition occurs; the transition is specifically making your retirement savings a realized gain which can only be done in a no-risk investment vehicle.
Who Carries The Risk In Annuities?
Fixed Annuity
Simply put, the insurance company does through investment options cost and performance.
Indexed Annuity
Simply put, again, the insurance company.
The insurance company must pay out a minimum guaranteed rate of no less than 0%, regardless of what they earn on their investments with an Indexed Annuity.
Variable Annuity
The Variable Annuity purchaser chooses to directly invest in an array of available stocks, bonds, mutual funds, and underlying subaccounts on their annuity; any gain or loss is passed directly to the annuity purchaser in whole (with fees and charges).
There is a potential for the annuity purchaser to experience a loss of principal and gains with a Variable Annuity, in the event of poor market performance.
Data provided by Wink, Inc.
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