Ask the Piggy Bank: Variable or Fixed Annuity?

Jean, over at Small Business Boomers and of The Thriving Writer fame, submitted this question for Ask the Piggy Bank:
I’m looking at buying an annuity and I’m wondering what the difference is between a variable annuity and a fixed one.
This is an excellent question. Annuities are used as retirement income. Basically, they are savings investments that offer an annual rate of return.  They are tax-deferred and pay a death benefit should you die before collecting. Like other retirement investment accounts, you can’t access them before age 59 1/2 without penalty.
Fixed annuity
When you add a fixed annuity to your retirement …read more