Money Management

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Variable Annuties
Variable annuities are agreements or contracts between a person and their life insurance company. An individual agrees to pay the insurance company a one-time investment or payments in exchange for a regular flow of income or a one-time fee owed to the investors at a set time in the future.

The insurance company typically takes the money that a person gives them and invests it into one or many financial investment portfolios. The success of the variable annuities directly correlates to the performance of the portfolio. The money, in regard to variable annuities, is not taxed until it is extrapolated by the investor. In many instances, investors can set up variable annuities to benefit someone else, especially in the event of the investors death before they have had a chance to collect on their investment. (more)



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