Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

Question

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Variable annuities offer potential for higher returns but also come with higher risk, making them a better choice for investors with a higher risk tolerance. During the withdrawal phase of the annuity, the investor has more flexibility to adjust their investment strategy and ride out any market fluctuations. Fixed annuities, on the other hand, offer a guaranteed rate of return but may not keep up with inflation, limiting the investor's ability to grow their assets over time.

Variable Annuities Are Usually Better Choices Than Fixed Annuities for Risk