Types of Annuity Plans
It is important to understand the types of annuity choices you have. This is especially true if you’re looking to keep your money safe for the long term. Variable annuities, for example, change when the markets do. As such, those types of annuity plans do not protect your principal. However, if you have a fixed annuity or a fixed index annuity (FIA), your money is safe. In addition, an FIA has the benefit of possible higher rates of return than a fixed annuity. With an FIA, an insurance company promises to keep your initial investment safe. Yet, you also the ability to earn interest. In other words, you may gain earnings without risking your money in the market.