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Return To Annuity FAQ Archive   Search the Archives What is the difference between a fixed and variable annuity? Answered By Ammon Yorke, Editor Fixed annuities are investments from government securities and corporate bonds. They are offered a fixed or guaranteed rate, usually over a period of one to ten years. So when you receive payments, the monthly release of funds is set to a fixed amount and already guaranteed. This type of investment is preferred by investors who value safety and stability of their money and for those retirees who wants their money to be protected against the possible instabilities in the stock market. Variable annuity allows you to put down your investment in a variety of securities like money market securities and interest accounts offering fixed rates. Stock market performance will decide the annuity’s value and the return of your money that you have invested. Though there is a great risk because of unprecedented movement of stocks in the market, some still consider investing in a variable annuity because they are comfortable of fluctuations in the market and get rid of their investment in static position. --- permission must be obtained from editor Ammon Yorke to re-publish --- keywords: Annuities | Annuity | Securities | Bonds | Money Market Annuity Beneficiary

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