That individual, along with the millions belonging to that cohort, will be distinguished by experiences influenced by the exciting rise in technology and innovation, as well as by the uncertainties of competing successfully in the global macro-economy.
With one eye out to their retirement futures, it is no surprise then that Generation X is looking for investment solutions that balance income generation at retirement with potential growth of their investment
While advantages like an annuity’s guaranteed income feature provide the assurance that no matter what happens they can count on a tax-deferred reserve of income down the road, they should also keep a positive perspective on the equity market’s long term history as well.
Variable annuities in particular, can offer a distinctive way to construct a long-term investment plan. They provide a range of investment selections through sub-accounts that include stocks, bonds (or a blend of the two) and some even have fixed account options.
Despite the market’s ups and downs, the benefits of keeping invested in stocks are still abundantly clear as this chart illustrates. While market volatility can occasionally shake up even the most confident investor, looking back on the performance of the main domestic equity benchmark, the S&P 500 Index, offers an overwhelming view as to how often the number of positive performance years beat the number of negative performance years.
The payout rate reflects reductions for expenses and profits
Most importantly, ask yourself: “What features do I really want to pay for?” Then, with the help of a financial advisor, examine the variety of choices available – and weigh the advantages most appropriate for your situation.
Then, before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment options.
Just like any other investment, variable annuities contain characteristics that may or may not match your own objectives, preferences or tolerance for risk. For many long-term Gen X investors, though, a variable annuity strategy can provide a real advantage to defining and attaining portfolio goals.
Guarantees apply to certain insurance and annuity products (not securities, variable or investment advisory products) and are subject to product terms, exclusions and limitations and the insurer’s claims-paying ability and financial strength.
Investment management fees
These are assessed depending on the investment options within variable annuities, and are similar to management fees on
mutual funds. Check the annuity prospectus for any underlying funds to learn how much you might pay.