Financial Planning AnnuitiesWhat Is a Variable Annuity

This is financial advisor, Patrick Munro,
talking about what is a variable annuity. A variable annuity, just like the word implies,
variable is Wall Street's version of what an annuity should be. What they've done is
they've taken mutual funds, which are of course variable in nature, and they've wrapped it
in a sheath of life insurance; therefore, making the benchmark of an annuity. The problem
is that mutual funds are of have the following rules attached to them.

Past performance is
no indication of future value, may lose value, and not insured by any federal government
agency. Those kind of rules are probably not the rules you should be looking for for your
retirement instrument, but you know Wall Street has the ability and the right to offer these
instruments up to the public. For more information on variable annuities, go to their website
at www.Sec.Gov; then of course click on enforcement, and then click on investor alerts, and inside
there you will see various financial instruments, but there is a tutorial from the United States
government on variable annuities; what you should know. Watch for rates, of course, also
watch for fees, watch for charges on the account that normally, fixed annuities and equity
index annuities do not have.

So make sure that you work with a licensed professional
if you're buying a variable annuity, and always have safety of your money in the front of
your mind when you're doing something like this. This is financial advisor Patrick Munro,
talking about variable annuities..