It depends on the type of annuity you purchase. While all investments carry some level of risk, fixed deferred annuities are fairly safe because they come with a guaranteed minimum interest rate. This means that New York Life assumes all the investment risk, so your payout is not affected by market fluctuation. Annuities are less liquid than some other types of investments. Access to your investment can be affected by taxes and possible surrender charges.
Variable annuities, on the other hand, involve investments that are subject to market fluctuation. While this can mean higher returns and payouts, it can also result in losses depending on how the investments perform. Your financial services professional is always available to provide guidance and help you determine which type of annuity makes the most sense for your specific needs and goals.