Annuity Guys®

Annuity Rates, Features & Ratings: America's trusted annuity resource. Compare best options for hybrid, index, fixed, variable & immediate annuity quotes.


Helping You Create Great Results Your Retirement Deserves!



(217)753-1515
  • Home
  • About Us
    • About Us
    • Contact Us
    • Site Terms & Disclosure
    • Privacy Policy
  • FAQs
    • Most Frequently Asked Annuity Questions
  • All Annuity Guys Videos
  • Annuity Types
    • Best Annuity Reviews
    • Market Free™ Annuities
    • Choosing an Annuity
    • Deferred Annuities
    • Hybrid Annuity Choices
      • Hybrid Annuity Pros&Cons
      • Hybrid Income Riders
      • Hybrid Annuity Guarantees & Strategies
    • Fixed Annuity Choices
      • Fixed Annuity Performance
      • Better Fixed Annuities
      • Fixed Deferred Annuities
      • Fixed Rate Annuities
      • Fixed Annuity Alternatives
      • Fixed Annuity Pros & Cons
      • Fixed Annuity Negatives
    • Index Annuity Choices
      • Fixed Index Annuity Features
      • Fixed Index Annuity Performance
      • Better Fixed Index Annuities
      • Fixed Index Annuity Alternatives
      • Fixed Index Annuity Pros & Cons
      • Fixed Index Annuity History
      • Fixed Index Annuity Negatives
    • Immediate Annuities
      • Immediate Variable Annuity
      • Immediate Fixed Annuities
    • Variable Annuities
      • Variable Annuity Features
      • Better Variable Annuities
      • Variable Annuities Disadvantages
      • Variable Annuity Alternatives
      • Variable Annuity Negatives
      • Variable Annuity Performance
    • Pre-Issued Annuities™
      • Hybrid Annuities versus Pre-Issued Annuities ™
    • Annuity Glossary
  • Articles
    • How Do MarketFree™ Annuities Work?
    • Are Annuities Safe?
    • Living Benefits
    • FIA Performance
    • Beware of FIAs?
    • Annuities & Retirement
    • Annuities & Estate Tax
    • Rollovers & Annuities
    • Annuities & Tax
    • Charity & Annuities
    • The Lost Decade
    • Best Annuity Videos
    • Social Security Benefits
  • Calculators
    • Retirement Planning Calculator — Basic
    • Retirement Shortfall Calculator — Basic
    • Immediate Annuity Calculator & Quotes
    • Fixed Index Annuity Calculator & Fixed Annuity Calculator
    • Variable Annuity Calculator & Hybrid Annuity Calculator
  • Blog
    • Annuity Guys® Weekly Annuity Video Blogs
  • Get Annuity Guys Help
    • Request Annuity Guys’ Planning Help Today
You are here: Home / Annuity Types / Variable Annuities / Variable Annuity Performance

Variable Annuity Performance

Today's Top Ten Fixed Annuity Rates (MYGA)

ALL rates are continually subject to change and accuracy is never guaranteed since rates and features change frequently. Rates are provided for conceptual and educational purposes only. RATES SHOWN ARE NOT A SOLICITATION.
 

Performance of Variable Deferred Annuities

Since variable annuity# performance is tied to the securities market, we have to look beyond the last ten years – which have not been so good. Instead, you should consider that over the last 50 or so years the total returns possible by investing in an index fund that mirrors, say the S&P 500 or the Dow Jones Industrial average, would have averaged in the vicinity of 9% annually!
 

**Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.

Review 3-Best Retirement Annuities for Your
GROWTH, INCOME & SAFETY!

The possibilities are open using investment diversification with potential growth, while harnessing the power of tax deferral made possible with variable annuities#. Variable annuities operate similar to 401K plans and other qualified retirement plans that allow risk type investments for allocations within the plan. Unlike employer-sponsored plans, there are no limits on how much you can sock away using a variable annuity#. One of the recent comparisons and complaints leveled at both variable annuities# and many employer-sponsored plans are the high fees that tend to cut the overall return and growth of the retirement investments. From 1999 through 2009 variable annuities# have generally not fared well based on a down stock market and not so well against market index funds, since variable annuity# fees are typically up a couple of percents higher.

An approximation of fees that are customary on variable annuities# are as follows: Administrative: .25%; Mortality: .75%; Income rider: .75%; Enhanced Death Benefit: .75%; Underlying Investment Expense: 1.5%. As you can see, minimum fees on a stripped out variable are around 2% and a fully featured variable annuity# may run as high as 5%. The problem with fees is obvious. If your investments are down 20% and you add fees, you are down about 25%. So fees would actually comprise around 20% of your loss, which does a real number on your principal. In down markets the equation mostly does not work so well for variable annuities#.
Deferred Variable Annuity vs Deferred Fixed Annuity
So, what is the distinction between variable deferred and fixed deferred? It is real simple: Fixed is when the insurance institution assumes the risk for your principal and accumulation and variable is when you assume the risk for the underlying investments, principal and accumulation.

Deferred Variable Annuity Performance & Facts

  • Deferred variable annuities# originated in the U.S. approximately 60 years ago
  • They can be purchased in periodic, systematic or lump sum payments
  • Deferral in variable annuities# allows the value of the annuity to increase
  • Variable annuities have the greatest potential for gain or loss
  • After a deferral period, a variable annuity# may produce more income
  • Deferred variable annuities# have the added advantage of tax deferral
  • They can be annuitized providing a lifetime of income; however, it may fluctuate
  • They are the opposite of immediate annuities, since immediate annuities begin income soon after they are purchased in a lump sum
  • Variable deferred annuities are typically invested in the securities market and the purchaser assumes the market risk
  • Deferred variable annuities# are creditor-protected in most states.
  • Deferred variable annuities# are first **guaranteed by the claims paying ability of the insurer. The underlying invested assets are owned by the client and are not at risk if the insurer defaults
  • Check out our deferred variable annuity# calculator

Deferred Variable Annuity Performance Summary

All deferred variable annuities# enjoy tax deferral with no income tax requirement until withdrawal. This may be an advantage over many investments like CDs, mutual fund^s and securities-oriented investments when considering a long term retirement plan. A long term variable annuity# investment may be able to outperform CDs, bonds and treasuries. Reinvesting money that would otherwise be paid out in tax over an extended period of years is always an advantage. In addition, deferred variable annuities# have several benefits that may be beneficial for retirement planning.

Question: How are licensed agents or advisors compensated on variable annuities#?

Answer: By commission, which is normally paid up front and in a trail as long as you own the variable annuity#. This normally works out to around 1% per year so over 20 years the commission would likely be 20% of your account value on an annually increasing amount (hopefully increasing or ouch). Mutual funds and money management pay similarly. Fixed annuities generally pay a one-time commission or an initial set up administrative fee.

346
SHARES
ShareTweetGoogleLinkedinPinterestSkypeStumbleuponTumblrDeliciousDiggRedditMail

 

Empowering Annuity Reference Book

 
DOWN-LOAD NOW - FREE!
  • Annuity Guys Reference Book - 250 pages of Annuity Facts

  • "The New Retirement"
    Annuity Reference Book 
    Free Instant Download
  • Confidential - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.

 

  • 7-Steps in Avoiding Annuity Information Overload

    7-Steps in Avoiding Annuity Information Overload

    “Information Overload” creates a condition we call “Paralysis of Analysis”. It is the fear of making a poor decision which …Read More »
  • Top Ten Fixed Index Annuity Questions to ask Before Purchasing!

    Top Ten Fixed Index Annuity Questions to ask Before Purchasing!

    And now, here’s your Fixed Index Annuity TOP TEN Countdown… while we are definitely not the Casey Kasem version of counting down the top …Read More »
  • Can Annuities Create Your Highest Retirement Income?

    Can Annuities Create Your Highest Retirement Income?

    Which of these two statements about retirement income do you find more appealing?My retirement income is contractually **guaranteed to meet …Read More »

Revealing Fun Video: Fiduciary Advisors Vs. Annuity Salesmen
MUST KNOW FACTS 90% of
ANNUITY ADVISORS AVOID TELLING!
  • *FIDUCIARY RETIREMENT REVIEWS
    Second Opinions Improve Retirements
     
    "For Your Retirement's Success"
     Choose a *Fiduciary Advisor who gives you Full Disclosure of Cost & Selection.
     
    Material Fact 1:
      About 90% of advisors ARE NOT REQUIRED by law to do what is best for their clients!
     
    Material Fact 2:
     Fiduciary Advisors ARE REQUIRED by law to do what's best for their clients! 
     
      Hence, clients of a fiduciary can know that their advisor chose the highest legal standard required by law to work strictly for their highest good.
     
     We estimate Fiduciaries are less than 10% of total U.S. financial service providers. Fiduciaries are held to the highest client legal standard of financial planning and investment advice.
     
     The other 90% are sales oriented advisors, brokers, bank reps, registered reps. & insurance agents, selling products on a much lower suitability legal standard, not necessarily what's best for their client!
     
       Fiduciaries also must disclose conflicts of interest that could potentially bias their advice, such as; selling products that pay them higher commissions having higher fees or costs, and their lack of investment product access limiting their client's opportunities, to name a few.
     
    Choosing your advisor can have
    "The Largest Single Impact on
    Your Retirement's Success or Failure"


  • Are Annuity Surrender Charges a Deal Breaker?

    Are Annuity Surrender Charges a Deal Breaker?

    The last time you bought a new car, how much of a factor in your purchase decision was the vehicles …Read More »
  • Can Annuities Help Retirees Transition from Saving to Spending?

    Can Annuities Help Retirees Transition from Saving to Spending?

    Mom used to talk about knowing the difference between “a want” and “a need” when I was younger. As my …Read More »
  • The China Affect on Annuities…

    The China Affect on Annuities…

    There has been no shortage of China headlines as their economy faces major headwinds. It would be naive to think …Read More »
  • Variable Annuities Vs Fixed Index Annuities – FIAs

    Variable Annuities Vs Fixed Index Annuities – FIAs

    Suze Orman came by the office the other day… Okay, true confession, so, she was actually on the cover of an …Read More »
  • Smooth Market Volatility with Fixed Index Annuities

    Smooth Market Volatility with Fixed Index Annuities

    We all have heard the saying “what goes up, must come down” However, when it comes to your retirement portfolio …Read More »
  • Annuity Rates vs Bank Interest Rates  – Which is Best?

    Annuity Rates vs Bank Interest Rates – Which is Best?

    Since something is better than nothing, then more of that something is usually even better – thus, the reason why so many traditional bank savers have …Read More »
  • Will Rising Interest Rates affect Stocks, Bonds, and Annuities?

    Will Rising Interest Rates affect Stocks, Bonds, and Annuities?

    With President Biden overseeing our pandemic induced V shaped recovery, some experts believe the Federal Reserve Bank needs to begin …Read More »
  • What are Hybrid Annuities?

    What are Hybrid Annuities?

    Hybrid annuities, also referred to as hybrid income annuities, are essentially a type of annuity contract that allows the account …Read More »

View Our Newest Videos! Subscribe Now
  • Annuity Guys Videos - Annuity Answers
  • New Annuity Guys Videos
    Our Entertaining & Informative
     Saturday Morning Video Blog
  • Timely Retirement & Annuity Issues - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.


  • Buy an Annuity Now or Will Rates Rise?

    Buy an Annuity Now or Will Rates Rise?

    All things come to him who waits- provided he knows what he is waiting for… Prior to the Corona-virus it …Read More »
  • Trust the stock market or hedge with annuities?

    Trust the stock market or hedge with annuities?

    Are you aware that the greatest number of consecutive days the Dow has ended with a gain is only 13? Since 1950 …Read More »
  • How are Annuities Affected by the New 2015 Rollover Rules?

    How are Annuities Affected by the New 2015 Rollover Rules?

    The Internal Revenue Service is changing the IRA rollover rules this year – if you don’t know about this change …Read More »
  • Annuity Scams – Fear Factor or Reality?

    Annuity Scams – Fear Factor or Reality?

    The Internet is full of warnings and alerts about annuity scams that create the appearance of  industry run amok with …Read More »
  • Beware of Best Annuity Claims Aka Sales Hype!

    Beware of Best Annuity Claims Aka Sales Hype!

     When you begin research on annuities via the internet it does not take long before you realize that most sales people, agents, and …Read More »
  • Why Should Anyone Rely on an Annuity?

    Why Should Anyone Rely on an Annuity?

    By protecting your income foundation with an annuity or annuities — and including Social Security and/or a pension as non-commercial …Read More »
  • Choosing Annuity Potential or Income **Guarantees

    Choosing Annuity Potential or Income **Guarantees

    Have you ever heard the quip “It can be hard to remember that the objective was to drain the swamp …Read More »
  • Exposing an Advisor’s Annuity Bias!

    Exposing an Advisor’s Annuity Bias!

    Would you allow your general practitioner to perform heart bypass surgery on you in their office? Since, after-all, he or …Read More »
Get Newly Released Annuity Guys® Videos on Saturday Mornings
  • Annuity Guys Videos - Annuity Answers
  • New Annuity Guys Videos
    Our Entertaining & Informative
     Saturday Morning Video Blog
  • Timely Retirement & Annuity Issues - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.


  • Why do Wives Prefer Annuities?

    Why do Wives Prefer Annuities?

    Before everyone starts yelling gender discrimination, we know that husbands can prefer annuities too.However, it is not uncommon for us …Read More »
  • Five Top Annuity Safety Risks to Avoid

    Five Top Annuity Safety Risks to Avoid

    Annuities are safe, secure, and without risk…. hmm, well not exactly. As Annuity Guys® we expound quite a bit on the safety …Read More »
  • Stop Annuity Procrastination: New Years Resolution!

    Stop Annuity Procrastination: New Years Resolution!

    Procrastination – or the act of replacing high-priority actions with tasks of lower priority.We always hear of people who spend more …Read More »
  • Why are Markets and Annuity Sales at All Time Highs?

    Why are Markets and Annuity Sales at All Time Highs?

    Equity markets increasing and annuity sales increasing at the same time is a little like cats and dogs playing together. …Read More »
  • Are Annuity Fees, Surrender Costs, & Commissions too High?

    Are Annuity Fees, Surrender Costs, & Commissions too High?

    I would wager that everyone has used the phrase “You get what you pay for” in describing a less than desirable …Read More »
  • What Percentage of Your Portfolio Allocation Should Be Annuities?

    What Percentage of Your Portfolio Allocation Should Be Annuities?

    Want to know just how much of your retirement nest egg you should consider for placement into annuities? The U.S. …Read More »
  • Optimizing Annuity Income for Retirement

    Optimizing Annuity Income for Retirement

    If we only had a nickel for every phone call that came into the office which started out like this…“Hello, This is …Read More »
  • Will Rising Interest Rates affect Stocks, Bonds, and Annuities?

    Will Rising Interest Rates affect Stocks, Bonds, and Annuities?

    With President Biden overseeing our pandemic induced V shaped recovery, some experts believe the Federal Reserve Bank needs to begin …Read More »
  • What are Hybrid Annuities?

    What are Hybrid Annuities?

    Hybrid annuities, also referred to as hybrid income annuities, are essentially a type of annuity contract that allows the account …Read More »
  • Are 8 Percent Annuity Returns in 2025 Too Good to be True?

    Are 8 Percent Annuity Returns in 2025 Too Good to be True?

    Annuity Salesman asks:  “How would you like an eight percent compounded return? -Guaranteed!” Misled customer replies, “Where do I sign-up?”Is …Read More »

 

Empowering Annuity Reference Book

 
Start Reading Now - Instant Download
  • Annuity Guys Reference Book - 250 pages of Annuity Facts

  • "The New Retirement"
    Annuity Reference Book 
    Free Instant Download
  • Confidential - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.

 
Comprehensive Site Terms and Disclosure | Privacy Policy | Copyright © 2025 Annuity Guys®


  ** Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. Annuities are not FDIC insured and it is possible to lose money.
Annuities are insurance products that require a premium to be paid for purchase.
Annuities do not accept or receive deposits and are not to be confused with bank issued financial instruments.
During all video segments, Dick and Eric are referring to Fixed Annuities unless otherwise specified.


  *Retirement Planning and annuity purchase assistance may be provided by Eric Judy or by referral to a recommended, experienced, Fiduciary Investment Advisor in helping Annuity Guys website visitors. Dick Van Dyke semi-retired from his Investment Advisory Practice in 2012 and now focuses on this educational Annuity Guys Website. He still maintains his insurance license in good standing and assists his current clients.
Annuity Guys' vetted and recommended Fiduciary Financial Planners are required to be properly licensed in assisting clients with their annuity and retirement planning needs. (Due diligence as a client is still always necessary when working with any advisor to check their current standing.)



  # Investors should consider the investment objectives, risks, charges and expenses of a variable annuity and its underlying investment options. The current prospectus and underlying prospectuses, which are contained in the same document, provide this and other important information. Please contact an Investment Professional or the issuing Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.


  ^ Investors should consider investment objectives, risk, charges, and expenses carefully before investing. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.


  ^ Eric Judy offers advisory services through Client One Securities, LLC an Investment Advisor. Annuity Guys Ltd. and Client One Securities, LLC are not affiliated.


346 SHARES