All securities are subject to market risks, including the potential loss of principal invested. Variable annuities are specifically suitable for long-term investing.
While non-qualified annuities offer the added benefit of tax deferral, in the case of qualified annuities, the tax deferral is provided by the retirement plan itself. The investor should focus on the benefits offered by a variable annuity to assess if a variable annuity is right for them. Asset allocation does not assure a profit or prevent a loss.
