Page 10 - DON'T MAKE ME SAY I TOLD YOU SO - ANNUITY CHAPTER ONLY
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Section 3
the Growth Potential of Stocks
As an investment product, a variable annuity offers you the
opportunity to grow your assets. Variable annuities enable you
to invest in a portfolio of funds, called “subaccounts,” which are
essentially mutual funds in an annuity contract. Typically, you can
allocate your money among one or more of these investments,
which will fluctuate in value. The value of your annuity is directly
tied to the performance of these subaccounts.
Available choices range from the most conservative – money
market, guaranteed fixed accounts and government bond funds – to
growth-oriented subaccounts such as growth, small-cap, mid-cap,
large-cap, capital-appreciation, aggressive-growth, and emerging-
market funds. An annuity typically offers subaccounts administered
by money managers, outside of the insurance company offering
the annuity contract.
The number of mutual fund subaccounts available in a contract
varies, with some contracts offering nearly 100 different investment
choices.
Chapter 4: Annuities
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