Variable Income Annuities
Variable income annuities provide lifetime income payments that vary in amount based on the performance of the underlying funds you choose. In other words, a variable income annuity gives you the potential for payments to increase over time as well as the ability to adjust how your annuity is invested. At the same time, a variable income annuity means more risk and exposure to market volatility.
The potential for increasing payments can help you hedge against inflation and the erosion of your purchasing power over time. Remember, though, that your payments may decrease if your annuity fund performance is unfavorable.
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