A variable annuity is a type of investment product that allows individuals to invest their funds in a variety of securities, with the return based on the performance of those investments. Unlike fixed annuities, where the payout amount is predetermined, variable annuities offer the potential for greater growth through market exposure, but also come with increased risk due to market fluctuations. Investors can typically choose from a range of investment options, making it a flexible retirement savings tool.
congrats on reading the definition of variable annuity. now let's actually learn it.