Variable Annuities
Investment subaccounts that pursue market growth, with optional guarantees and a tax-deferred wrapper for higher earners.
Overview
A variable annuity lets you allocate premiums across investment subaccounts — similar to mutual funds — so the contract value rises and falls with the markets. Growth is tax-deferred, which can benefit higher earners who have maxed out qualified plans.
Variable annuities are the only annuity with true market exposure, and the only one where contract value can decline. Optional living benefit riders can add guaranteed lifetime income or a guaranteed minimum withdrawal benefit regardless of market performance, for an additional cost.
Because of their complexity and fees, variable annuities are appropriate in specific situations. We model the rider costs, surrender schedules, and subaccount options against your goals and existing portfolio before recommending one.
Key Benefits
- Tax-deferred growth on market-based subaccounts
- Optional guaranteed lifetime income and withdrawal riders
- No annual contribution limit on non-qualified money
- Beneficiary protection and probate avoidance
Interested in Variable Annuities?
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