When you purchase a variable annuity, the annuity issuer offers you a choice of investment portfolios into which you can allocate your premiums.
The investment choices may include general equity stocks, balanced portfolios, bonds, and other specialty investments, such as international stocks.
A fixed annuity is an annuity wherein the issuer (usually an insurance company) guarantees both the interest rate paid on invested dollars and the return of principal.
The issuer guarantees that a minimum rate of interest will be paid on the annuity, but the actual rate of interest credited to the annuity is typically higher than the guaranteed rate.
Fixed index annuities can provide returns that exceed those of traditional annuities, however are generally considered to offer lower returns than direct investment in common stock.
A variable annuity is a type of annuity that has a variety of investment options (called subaccounts) available for your selection.
A mutual fund is an investment company that pools money from many people and invests it in stocks, bonds, or other securities.
Each investor owns shares; each share represents a tiny portion of each individual security held by the fund.
RPL0005.192 Lincoln Investment is a broker/dealer and investment advisory firm with 50 years' experience.Our 403(b) plan offers a flexible, long-term savings solution, solid investment options and investor services and support.All 403(b)(7) participants have access to or can call Oppenheimer Funds Retirement Plans Services at 800.835.7305 for assistance.What makes AXA unique in the public school marketplace is that its 403(b) TSA funding vehicles, as well as other retirement and protection products, are made available through the Retirement Benefits Group, a specialized division of affiliate AXA Advisors, LLC.Over 1,000 local dedicated financial professionals in the Retirement Benefits Group currently serve 15,000 public schools and over 650,000 employees.
Unlike a fixed annuity in which the issuer guarantees that a minimum rate of interest will be paid on your investment in the annuity, the issuer of a variable annuity does not guarantee or project any rate of return on the underlying investment portfolios.