If you want to contribute more money later, you will have to purchase another annuity. Make ongoing contributions to a flexible payment annuity. Contribute smaller amounts of money at regular or even irregular intervals. Variable annuities typically offer a range of investment or funding options. These may include stocks, bonds and money market instruments.
Variable annuities are uncertain compared to fixed annuities.
If the funding options you choose for your annuity perform well, they may exceed the inflation rate or fixed annuity returns. If they don't, you may lose not only prior earnings, but also even some of your principal. Some variable annuities offer a fixed account option that guarantees both principal and interest, much like a fixed annuity. That gives you the option of dividing your money between the low-risk fixed option and higher risk vehicles such as stocks, all under the umbrella of just one annuity. Variable annuities are usually sold on a flexible payment basis, as opposed to a one time lump-sum investment.