Understanding Fixed vs Variable Annuities
Choosing between fixed and variable annuities is like choosing between irons and woods. Each has its place in your bag.
Fixed Annuities: Your Reliable Irons
These are your dependable, predictable clubs. You know exactly what you're getting: - Guaranteed interest rate - Predictable returns - Lower risk - Perfect for conservative players
Think of fixed annuities as your 7-iron. It might not be the most exciting club in your bag, but you know exactly how far it'll go every single time.
Variable Annuities: Your Power Woods
These offer more potential but come with more uncertainty: - Returns tied to market performance - Higher potential gains - Higher risk - Growth opportunity with protection features
Variable annuities are like your driver. On a good day, you're crushing it down the fairway. On a bad day, well... at least you have some built-in protections.
Which One is Right for You?
Just like your golf game, it depends on: - Your risk tolerance - Your timeline - Your financial goals - Your overall strategy
Most players benefit from having both in their bag. Want to figure out the right mix for you? Let's chat.
Like What You Read?
Let's discuss how these strategies can work for your retirement plan.
About the Author
Jed Monsen — The Annuity Caddie
Jed Monsen is the founder of Today Financial Agency and an income specialist licensed to help retirees across the U.S. build guaranteed retirement income. He works through the math with clients like a caddie reads a course — one hole at a time, no pressure.
