Variable Annuities vs. Fixed Annuities: Which is Right for You?

Introduction: “Annuities can be complex, so let’s simplify by comparing two common types: variable and fixed annuities. Knowing the difference can help you choose the best option based on your goals.”

Main Sections:

• Variable Annuities: “These let you invest in the market, meaning there’s growth potential, but also risk. If you like the idea of having income later and you’re okay with market ups and downs, a variable annuity might be a good fit.”
• Fixed Annuities: “Fixed annuities, on the other hand, offer guaranteed returns, making them more predictable. This means less risk but also less growth compared to variable annuities.”
• Risk and Return: “Variable annuities tend to have higher returns over time, but they’re also tied to market performance. Fixed annuities are steady and reliable, perfect if you prefer stability.”
• Example Scenarios: “Sarah might prefer a fixed annuity if she’s close to retirement and wants predictable income. Meanwhile, Mike, who’s ten years from retirement, might lean toward a variable annuity for the growth potential.”

Conclusion: “Both options have their strengths, so it really depends on your financial situation and tolerance for risk. Let’s chat if you’d like more personalized advice.”