So, I still have a variable annuity that I inherited years ago. It will have to be dissolved next year. Late last year I moved all the investments to a money market fund and made this my de-facto emergency fund as the (after taxes) amount is about what I was looking for.
So, after looking at the available investment options, there is a "fixed accumulation feature min 3%" option. I've found some documentation on how this works, and it seems to be exactly what it sounds like, a guaranteed minimum 3% yield. If this is the case, I will put the entire balance of the fund into here until I dissolve the annuity.
The question is this: Do I understand this correctly? The documentation on this feature is very sketchy, it's not like a fund. Apparently the $$ go to the company's general fund which they invest and also make money on. That's fine, but if this is a risk free 3% tax deferred return then I want in....so, is it??
So, after looking at the available investment options, there is a "fixed accumulation feature min 3%" option. I've found some documentation on how this works, and it seems to be exactly what it sounds like, a guaranteed minimum 3% yield. If this is the case, I will put the entire balance of the fund into here until I dissolve the annuity.
The question is this: Do I understand this correctly? The documentation on this feature is very sketchy, it's not like a fund. Apparently the $$ go to the company's general fund which they invest and also make money on. That's fine, but if this is a risk free 3% tax deferred return then I want in....so, is it??