Variable Annuities
Tap into market performance while securing future income
Variable annuities offer a dynamic approach to retirement planning, combining the growth potential of investment markets with the security of guaranteed income options. At PWYB, we recognize that some investors seek higher returns and are willing to accept some market risk. Variable annuities can provide this opportunity while still offering valuable protection features for your retirement years.
How Variable Annuities Work
Variable annuities operate on a more complex structure than other annuity types
Investment Options
Your premiums are allocated into sub-accounts, similar to mutual funds.
Market Participation
The value of your annuity fluctuates based on the performance of your chosen investments.
Tax-Deferred Growth
Earnings grow tax-free until withdrawal.
Death Benefit
Typically includes a guaranteed minimum payout to beneficiaries.
Optional Living Benefits
Can include guaranteed minimum withdrawal or income benefits.
Benefits of Variable Annuities
Growth Potential
Opportunity for higher returns through market participation.
Investment Flexibility
Choose from a range of investment options to suit your risk tolerance.
Tax-Deferred Growth
Postpone taxes on earnings until withdrawal.
Guaranteed Income Options
Secure a lifetime income stream, regardless of market performance.
Death Benefit Protection
Ensure a minimum legacy for your beneficiaries.
Ideal Candidates for Variable Annuities
Variable annuities may be particularly suitable for:
- Investors comfortable with some market risk in pursuit of higher returns
- Individuals seeking tax-deferred investment growth
- Those looking to supplement other retirement income sources
- People who want the flexibility to adjust their investment strategy over time
- Investors desiring a combination of growth potential and guaranteed income options
Comparing Variable Annuities to Other Options
vs. Fixed Annuities
Higher growth potential but with market risk
vs. Indexed Annuities
More direct market participation and potentially higher returns, but less downside protection
vs. Mutual Funds
Similar investment options but with added insurance features and tax deferral
The PWYB Approach
At PWYB, we take a comprehensive, client-centric approach to variable annuities:
- Risk Assessment: We thoroughly evaluate your risk tolerance and investment goals.
- Product Selection: We leverage our industry knowledge to identify variable annuities with competitive features and fees.
- Investment Strategy: We help you select and allocate among sub-accounts to align with your objectives.
- Rider Analysis: We assess optional riders to enhance your annuity’s benefits, if appropriate.
- Ongoing Management: We provide regular reviews and rebalancing recommendations as needed.
Frequently Asked Questions
We’ll help you select from available sub-accounts based on your risk tolerance and goals.
Fees can include mortality and expense charges, administrative fees, investment management fees, and rider costs. We prioritize transparency in explaining all fees.
Yes, the account value can decrease if the underlying investments perform poorly. However, many variable annuities offer optional protection features.
Yes, through a 1035 exchange. We can help determine if this is advantageous for your situation.
Ready to explore how a variable annuity can potentially enhance your retirement strategy?
Our experts are here to provide personalized guidance.
Explore Other Types of Annuities
Fixed Annuities
Predictable, guaranteed income with low risk. Ideal for those seeking stability in retirement.
Indexed Annuities
Potential for higher returns linked to market performance, with downside protection.
