What Are the Advantages and Disadvantages of a Variable Annuity?
In this video, Juliette Fairley explains that a variable annuity’s main advantage is its potential to grow with your investment portfolio, but its drawback is that it can also lose value when the portfolio declines.
Video Transcript
The advantages of a variable annuity is that it can grow with your investment portfolio. The disadvantage is that it can also drop with your investment portfolio. And your underlying investment portfolio is going to be with equities, bonds, or combination, or alternative investments. They're all different kinds of variations of your investment portfolio. But your variable annuity is going to grow according to that investment portfolio or it's going to decline according to that investment portfolio. So that's the positive and it's also the negative.
