answersLogoWhite

0

Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.

User Avatar

Wiki User

13y ago

What else can I help you with?

Continue Learning about Calculus

Which of these is true of an annuity?

there are two types of annuities including fixed and variable


How often do annuity rates usually fluxuate?

Assuming that "annuity rate" means the rate of interest paid on a deferred annuity, the answer depends upon whether the annuity is a VARIABLE one or not. The contract value of a VARIABLE deferred annuity is tied to the investment performance of the separate accounts chosen by the purchaser. These accounts are much like mutual funds, and their value will fluctuate, often daily. In a VARIABLE deferred annuity, there is no guarantee of principal or minimum interest (unless you've invested in the "fixed" account).In a non-variable annuity, often called a FIXED annuity, principal, and a minimum rate of interest is guaranteed. In addition to that minimum rate of return, most deferred annuities offer additional, non-guaranteed, interest. There are two types of fixed annuities: (a) "Declared Rate" and (b) "Indexed".Declared rate deferred annuities generally declare the current, non-guaranteed interest rate each year. Index annuities may declare and credit interest each year or retroactively, after several years.For more information, see Olsen & Kitces,"The Advisor's Guide to Annuities" (3rd ed.,2012, National Underwriter Co.) or "Olsen & Marrion, "Index Annuities: A Suitable Approach" (Olsen & Marrion LLC, 2011).


Which of these statements is true to an annuity?

There are three types annuities including fixed, indexed, and variable.


Do annuity rates remain steady or are they variable?

This actually depends on the annuity. A "fixed" annuity always gets you the same rate, while the rate of a "variable" annuity is indexed to some other rate, usually the federal prime rate. Rates are variable over the long term. It is possible to lock a steady rate in but it costs more to do so.


Fixed Annuity Calculator?

Oh, dude, a fixed annuity calculator is like a tool that helps you figure out how much money you'll get from a fixed annuity investment. It takes into account factors like your initial investment, interest rate, and payout period. So, if you're into crunching numbers and planning for the future, give it a whirl!

Related Questions

Is a variable annuity a good 403B investment?

Fees are higher in a Variable annuity than they are in say a fixed Index Annuity.


What are fixed annuities comprised of?

A fixed annuity is an annuity that pays a fixed amount of interest, defined by the terms of the contract. It is comprised of the money that you put in and the interest the insurance company provides in exchange.


Does ing variable annuities pay a higher interest than banks?

ING pay a high interest rate to those interested in their investment vehicles, as high as 9% interest rates for a single premium fixed annuity rate. They also offer flexible premiums at different interest rates.


What type of annuity pays you a flat interest rate?

A tax deferred fixed annuity pays a flat interest rate.


What is variable annuity?

A Transamerica Variable Annuity is a fixed system of payment, based on a minimum monthly payment, that ensures payment to individuals during and after retirement.


Which of these is true of an annuity?

there are two types of annuities including fixed and variable


What is transamerica variable annuity?

A Transamerica Variable Annuity is a fixed system of payment, based on a minimum monthly payment, that ensures payment to individuals during and after retirement.


What is a series of fixed payments and interest rate in excel?

Annuity


How often do annuity rates usually fluxuate?

Assuming that "annuity rate" means the rate of interest paid on a deferred annuity, the answer depends upon whether the annuity is a VARIABLE one or not. The contract value of a VARIABLE deferred annuity is tied to the investment performance of the separate accounts chosen by the purchaser. These accounts are much like mutual funds, and their value will fluctuate, often daily. In a VARIABLE deferred annuity, there is no guarantee of principal or minimum interest (unless you've invested in the "fixed" account).In a non-variable annuity, often called a FIXED annuity, principal, and a minimum rate of interest is guaranteed. In addition to that minimum rate of return, most deferred annuities offer additional, non-guaranteed, interest. There are two types of fixed annuities: (a) "Declared Rate" and (b) "Indexed".Declared rate deferred annuities generally declare the current, non-guaranteed interest rate each year. Index annuities may declare and credit interest each year or retroactively, after several years.For more information, see Olsen & Kitces,"The Advisor's Guide to Annuities" (3rd ed.,2012, National Underwriter Co.) or "Olsen & Marrion, "Index Annuities: A Suitable Approach" (Olsen & Marrion LLC, 2011).


What is a variable annuity prospectus?

Variable annuity prospectus is a type of loan that stays at a fixed rate depending upon the loaner. It can be a good thing to have and search about if you need help budgeting.


In a fixed annuity an investor can choose from many options usually in mutual funds?

variable


Which of these statements is true to an annuity?

There are three types annuities including fixed, indexed, and variable.