While this does not eliminate market risk, historically, these funds have offered highly competitive yields. By investing through mutual funds, you can enjoy a level of professional investment management and portfolio diversification that few individuals can afford on their own. The result is the potential for higher long-term returns, with less risk. Fixed annuities offer a fixed rate of return for a specified period of time.
Variable annuities offer a choice of stock, bond or money market portfolios.
The primary advantage of annuities over other investment products is that their earnings are tax-deferred. You don't pay taxes on your gains until withdrawal, when your tax rate may be much lower. The result is faster growth, with the potential to keep far more of what you earn in the end. SIPC protects against members business failure but not against loss of principal investment, nor is it equivalent to FDIC insurance. BNY Investment Center Inc. The Bank of New York or an affiliate receives compensation for serving as the investment advisor for and providing other services to the BNY Hamilton Funds.