Yusra
Valued Contributor
There are basically two types of annuities: fixed and variable.
1. Fixed annuities are basically just a way to invest your money in stocks and bonds that pay you a set amount each year. You can choose how much you want to contribute to the account, but once you've chosen that amount, it's locked in for the life of the account. The interest rate on these accounts is usually higher than what you can get from other types of investments, but if you keep it invested for long enough, it's likely to have a positive return over time.
2. Variable annuities are different. they're designed for people who want to make money grow over time rather than just stick it somewhere safe. These accounts often have lower minimum investment requirements than fixed annuities, and they're more flexible because they allow investors to make changes based on their risk tolerance or portfolio needs at any point before maturity (which could be as little as one year). They also tend to come with lower fees than fixed annuities do but there's no guarantee that any income will ever come out of them!
1. Fixed annuities are basically just a way to invest your money in stocks and bonds that pay you a set amount each year. You can choose how much you want to contribute to the account, but once you've chosen that amount, it's locked in for the life of the account. The interest rate on these accounts is usually higher than what you can get from other types of investments, but if you keep it invested for long enough, it's likely to have a positive return over time.
2. Variable annuities are different. they're designed for people who want to make money grow over time rather than just stick it somewhere safe. These accounts often have lower minimum investment requirements than fixed annuities, and they're more flexible because they allow investors to make changes based on their risk tolerance or portfolio needs at any point before maturity (which could be as little as one year). They also tend to come with lower fees than fixed annuities do but there's no guarantee that any income will ever come out of them!
