No guarantees on variable annuity returns — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

No guarantees on variable annuity returns

Get PDF file

by on
in Small Business Tax

Q: In a recent article, you wrote about variable annuities with a guaranteed minimum withdrawal. (5/16/05 issue) Would a guaranteed minimum income benefit (GMIB) variable annuity be better? V.G.

A: Although the exact terminology varies from company to company, the "guarantee" that annuity issuers typically pitch pertains to the income that will be paid out to the beneficiary, either for a specified time or for life. In effect, this feature provides a stream of income, regardless of investment performance. On the other hand, a fixed annuity, which is often the choice of more conservative investors, provides a guaranteed rate of return. Tip: Two major players: John Hancock ( and The Guardian (

Related Articles...

Leave a Comment

Previous post:

Next post: