Summerlin Benefits Consulting Q&AAnswer
Oct 15, 2024 - 09:38 AM
Returns on investments are ever-changing. A good return on an annuity varies depending on the type of annuity and market conditions. For fixed annuities, the returns tend to be lower but offer security with guaranteed payouts. Returns can range from 1% to 4%, depending on the current interest rates. Fixed index annuities, on the other hand, offer the potential for higher returns based on the performance of an underlying stock index, such as the S&P 500, but with some limitations like participation rates and caps, typically yielding between 3% and 8%.
Variable annuities, which are tied to the performance of stocks and bonds, can have much higher returns but also come with higher risk. These returns can range significantly, anywhere from 4% to over 10%, but are subject to market volatility. Ultimately, the best return depends on the annuity type, your risk tolerance, and your financial goals. For more in-depth information on annuity returns and how they can fit into your personal financial plan, check out resources like Canvas Annuity and Finance Strategists, and Summerlin Benefits Consulting.
