What is a deferred variable annuity?

A variable annuity is a tax-deferred retirement vehicle that allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of the investments you choose. Compare that to a fixed annuity, which provides a guaranteed payout.

What is a self directed variable annuity?

A variable annuity is a contract with an insurance company that includes both a self-directed variable investment component and an insurance component. Its intended purpose is for retirement.

Does ameriprise do annuities?

Ameriprise Financial can help you plan for a more confident retirement with fixed annuities available through third-party insurance carriers.

What are the risks associated with variable annuities?

Variable annuities involve investment risks just like mutual funds do. If the investment choices you selected for the variable annuity perform poorly, you could lose money. Contract fees may go towards your financial professional’s compensation.

Is a tax deferred annuity a good idea?

Deferred annuities work a lot like the individual retirement accounts (IRAs) and 401(k)s you’re probably more familiar with. So long as your money is in the deferred annuity, you don’t owe income taxes on your gains. Because of these tax and fee implications, deferred annuities are best used as a long-term investment.

In what real life situation can I use annuity?

Annuities are used mainly to supplement more traditional sources of retirement income such as Social Security and pension plans. Common features include: Tax-deferred growth. You will pay no income taxes on the earnings from your annuity investments until you begin making withdrawals or receiving periodic payments.

Do variable annuities guarantee payments for life?

Although variable annuities carry the potential of higher returns than fixed annuities, they don’t offer a guaranteed payout.