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Home Banking & Finance Are you an informed investor? ANNUITIES
Are you an informed investor? ANNUITIES Print E-mail
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Written by North American Securities Administrators Association   
Wednesday, 28 April 2010 16:03

Annuities are complex products that may combine the characteristics of insurance and investment securities. Because of their hybrid nature, annuities are sometimes marketed as one-size-fits-all products. This is simply not true.

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There are generally three types of annuities: fixed, variable and indexed, which may be immediate or deferred. The type of annuity you choose will determine how you earn (or lose) money based on the annuity’s performance. It is extremely important to understand how the annuity earns money, as well as how it subjects your investment to risk. With so many options on the market, ask a few simple questions before you add an annuity to your portfolio.

Are you an informed investor? ANNUITIES PDF Format

Source: North American Securities Administrators Association www.nasaa.org

We invite all of you to get a discussion going.  Please submit your comments at the end of this article, Thanks.


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