Variable Annuity

Variable Annuity is a retirement program that allows you to choose from a handful of investment opportunities and allows you to increase the amount of income that you will have after you retire. Unlike a fixed annuity, a variable annuity doesn’t offer a guaranteed interest rate. Instead, it offers you the chance to increase your wealth through investments that rise and fall with their value. This includes an increased level of risk.

Our professionals suggest that you seek out a professional assistant to help you decide whether a variable annuity is right for you.

Ask yourself these questions:

  • How much risk are you willing to shoulder? Variable annuities come with a high level of risk. Since your funds are attached to investments, they will rise and fall with your investments. Working with a professional financial advisor will lower your risks, but it won’t erase them.
  • Are you worried about your family’s finances after you pass away? Variable annuities with guaranteed death benefits are unique in that your family is promised a payout upon your death. They will receive no less than your initial investment.
  • When are you planning on using your investment funds? Most variable annuities will pay you an income at a set period of time. As long as you leave your investment with the same companies, you will be guaranteed a steady income. You may be subject to heavy fines if you decide to take out your entire investment early. Weigh your options carefully.
  • Do you want to gain tax advantages? You will be required to pay taxes on the money you receive from variable annuities. However, you will not have to pay until you actually start receiving your income.
  • How much are you willing to pay for your investments? All investments require you to give money to make a profit. People who invest in variable annuities have to pay regular fees. These fees can see like a lot compares to other types of investment, but the rewards are greater, too.

We understand how challenging it can be to navigate the financial world. Variable annuities may improve you and your family’s financial future. However, they come with various risks. Contact the professionals at SOGO Wealth & Risk Management to find out if a variable annuity is a good fit.

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