What is a variable annuity?
Variable annuities are among the fastest growing retirement investments.
Variable annuities are among the fastest growing retirement investments. Despite their popularity, many people still don’t know much about them.
What is an annuity?
It’s a contract issued by an insurance company that includes an option to turn your assets into an income you can’t outlive.*
Why is it good for retirement investing?
Because taxes aren’t due on variable annuity earnings until they are withdrawn. Of course, when your earnings are withdrawn, they are taxed as ordinary income. Because variable annuities are designed to be retirement investments, there is typically a 10% federal tax penalty on earnings withdrawn before age 59-1/2.
Why is it called “variable”?
When you buy a variable annuity contract, your money is invested in funds — similar to mutual funds — that are managed by investment professionals. Returns on your investment fluctuate as the prices of the stocks and bonds in the funds rise and fall. That’s why the annuity is called “variable.”
American Funds Insurance Series
A number of providers offer American Funds’ investment management in their variable annuity and life insurance products.
American Funds Insurance Series® (AFIS) serves as the underlying investment for a number of insurance products, including variable annuity contracts and variable life insurance policies.
Average annual total returns
Annualized returns (
PDF†), updated monthly
Prospectus
Prospectus ( PDF), updated annually
Portfolio holdings, updated quarterly
* Backed by the claims-paying ability of the issuing insurance company.
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