Aggressive investors may prefer variable annuities or registered index-linked annuities (RILAs) that offer higher growth potential with some risk of loss. However, most financial experts recommend that aggressive investors use other investment vehicles before annuities.
Key Points
- Variable annuity: invests in mutual fund subaccounts with market risk
- RILA: registered index-linked annuity — higher cap with some downside risk
- Aggressive investors: may prefer other investment vehicles first
- Annuities: best for guaranteed income and principal protection
- An independent agent can compare annuity options for aggressive investors