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Annuity 12
Variable Annuity Payout Charts




Example of Annuitized Payout

MR. WATSON: What kind of risk does a variable annuity have? Market risk.

MR. WATSON: What kind of risk did a fixed annuity have?

ALL: Inflation risk.

MR. WATSON: Let's talk about a vertical pole of risk, if you want to call it that.

Verticle Pole of Risk

MR. WATSON: On the bottom down here, you have fixed annuities. What's the problem with a fixed annuity? Inflation risk. Do y'all agree?


MR. WATSON: So a guy up here with a variable annuity, what kind of risk does he have?

STUDENTS: Market risk.


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