What has become a very popular financial product currently available on the market? For many people, variable annuities have become a good way to save and grow money for retirement. With variable annuities, your money is invested directly in the stock market, in a series of mutual fund type sub-accounts chosen by you. These sub-accounts, however, require constant monitoring to protect you against earnings loss or even worse, principal loss. Variable annuities are becoming more popular among those nearing retirement, but if you are close to or in retirement and are risk adverse, variable annuities may not be a good choice for your retirement savings.

Most people buy variable annuities to share in the stock market’s gains, while also taking advantage of annuities’ tax-deferred status, and making sure that their loved ones can have a death benefit to fall back on. However, some people that buy variable annuities are never aware that both their investment gains and principal are at risk from the market’s volatility. Risk-adverse individuals should consider traditional fixed annuities instead. Traditional fixed annuities offer the same tax deferred features as variable annuities, but are safer and more secure, because your money is never invested directly in the stock market. Fixed deferred annuities, which function something like a high-yield savings account or bank CD, can never lose value due to market declines. You continue to earn a favorable return, year after year, without having to pay taxes on your interest earnings. With a deferred fixed annuity, you won’t be kept up at night worrying about your money, like you might with variable annuities.

For those reluctant to completely give up the stock market, the fixed-indexed annuity offers returns tied to a particular stock market index, such as the S&P 500. Your principal deposit earns interest based on the market index’s growth. A fixed-indexed annuity requires no monitoring of sub-account performances, and fixed-indexed annuities even have a minimum guaranteed interest rate, so you can’t lose money even if the market performs poorly.

AnnuityForLife.com’s Annuity Specialists can help you decide which annuity product is right for you. If you’ve decided that variable annuities are too risky and you would like to learn about other annuity products that are available, call 1-888-261-6237 today.