http://theannuityquote.com Compare Annuities Wed, 07 Jan 2009 14:08:46 +0000 http://wordpress.org/?v=2.6.5 http://theannuityquote.com/annuity-good-or-bad/#comment-25 Bob MacDonald Sun, 03 Aug 2008 18:41:39 +0000 http://theannuityquote.com/?p=21#comment-25 This is a well written and concise discussion of annuities. However, unless the writer is discussing only "variable annuities," (which is not stated) then much of the information is incomplete and incorrect. There are two classes of annuities -- fixed and variable. Fixed annuities are not "investments" but rather insurance contracts with benefits guaranteed by the insurance companies. They offer a guarantee of principal and income. There is no risk of loss or, for that matter, gain above what is guaranteed by the issuing company. A variable annuity is an investment and as such tends to be more complicated. There is a potential for greater gain when compared to fixed annuities, but there is also potential for loss and lower payouts. In addition, the fees charged against variable annuities are higher than for those of fixed annuities. This blog would be more useful for the reader if the writer would clearly make these differences clear. This is a well written and concise discussion of annuities. However, unless the writer is discussing only “variable annuities,” (which is not stated) then much of the information is incomplete and incorrect.
There are two classes of annuities — fixed and variable.
Fixed annuities are not “investments” but rather insurance contracts with benefits guaranteed by the insurance companies. They offer a guarantee of principal and income. There is no risk of loss or, for that matter, gain above what is guaranteed by the issuing company.
A variable annuity is an investment and as such tends to be more complicated. There is a potential for greater gain when compared to fixed annuities, but there is also potential for loss and lower payouts. In addition, the fees charged against variable annuities are higher than for those of fixed annuities.
This blog would be more useful for the reader if the writer would clearly make these differences clear.

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