Different Types of Annuities Explained

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Rather than the certainty of a fixed rate, the Variable Annuity offers a variable rate of return generated from sub-accounts, usually mutual funds and bonds, during your accumulation phase.

The key here is that you are invested in the securities market and subject to the whims of an unstable asset. So, variable annuities don't carry the same principle and growth guarantees that other types of annuities offer.

Because variable annuities are securities products they are also regulated by the SEC and can only be sold by registered securities representatives.

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