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  • It depends on what you are trying to accomplish. "least amount of gamble and best return" dont always go hand-in-hand. A variable annuity is going to have risk and market volatility within the account value. A fixed indexed annuity doesn't have market risk to the account value, but may not earn as high a return in one year or the next. However, if you look at the past 12 years, fixed indexed annuities have performed better as a whole than variable annuities because they carry zero downside market risk.
    Both types of annuities can have "income riders" now. Fixed indexed annuities tend to have better guarantees than most of the variable annuities because of the way the insurance companies have to back up and insure those guarantees. In-fact recently many variable annuity companies have offered to buy clients out of their previous guarantees because of their inability to continue to manage that risk. Honestly, none of those three would be my choice for a client.

  • Login to rate this answer:   Answered on 12/26/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.