Four Alternatives to Variable Annuities

Variable Universal Life Insurance

This allows you to vary the amount of your annual premium contribution or suspend it altogether. As a result, the cash value and amount of insurance coverage will fluctuate, depending on the adequacy of your premium payments.

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Depending on your level of stock market expertise and risk tolerance, you may find variable annuities to be just the thing. And if the concept of variable annuity investing sounds attractive but you lack the time or inclination to get personally involved, you may want to consider hiring a financial planner or money manager to handle things for you.

If variable annuities sound too risky, a fixed annuity or equity-indexed annuity will probably suit you better. Just don't forget to periodically monitor the financial safety of the issuing insurance company. Otherwise, you're taking unnecessary chances with your retirement nest egg.

Whatever you do, always shop around and compare one investment to another. There's absolutely no reason to incur high costs or suffer with poor returns when there are plenty of good alternatives out there.