Investor Glossary-variable annuityInvestor Glossary-variable annuityInvestor Glossary-variable annuityInvestor Glossary-variable annuityInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Variable Annuity

The HTML to link to this page
 

A variable annuity provides a varying rate of return on an investment. The variable annuity's rate depends on the performance of the stock, bond and money market funds you chose as investment options. The insurance company paying the variable annuity may guarantee a minimum amount for future payments (often provided at retirement) while the remaining payments vary. Unlike an IRA, a variable annuity carries no restrictions on the amount of the annual investment. The periodic payments of a variable annuity offer you the comfort of knowing that you have less of a chance of outliving your assets. Another advantage of a variable annuity is that it is tax-deferred, meaning you pay no taxes on the income and investment gains until you withdraw the money. One must weigh these advantages against the risks and fees associated with a variable annuity before investing. In general, a variable annuity is meant to be a long-term investment.



Rate this variable annuity definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: diluted share, phantom income, labor relations, liquidity ratio, APR, per diem, ex-dividend date, ex-dividend, inflation, FICO score, option premium, average price per share, cancelled check, VIX, deferred revenue, covered put, class C shares, quality assurance, irrevocable trust, command economy, in escrow, wholly-owned subsidiary, retained earnings, debt service coverage, balance sheet, real GDP, required rate of return, 1031 exchange, minority interest, dividends payable, EBITDA, deferred tax, risk management, Key Rate Duration, 144a, annual return, implied volatility, limit order, LIBOR, 1035 exchange, margin rate, stock split, open position, 401a, reverse mortgage, current ratio, Zero Cost Collar, FTSE, stock market close


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use