jtrigowski
New Member
- 1
I'm still new to understanding all the complexities of annuities. My main understanding is variable annuities allow you to hedge inflation risk but expose you to the risk of market fluctuations, while fixed annuities expose you to inflation risk, but avoid market fluctuations and grow at a steady rate.
With that being said, I'm reading a lot about these Prudential HD annuities which lock in the highest daily value and provide a 5% guarenteed return off that. Now if the product truely functions like that, can someone explain what risk I would still have by choosing one of these over a fixed annuity??? Do fixed annuties in the current low interest rate environment offer higher fixed rate of returns than 5%?
I know I'm missing something here...
With that being said, I'm reading a lot about these Prudential HD annuities which lock in the highest daily value and provide a 5% guarenteed return off that. Now if the product truely functions like that, can someone explain what risk I would still have by choosing one of these over a fixed annuity??? Do fixed annuties in the current low interest rate environment offer higher fixed rate of returns than 5%?
I know I'm missing something here...