Is An Annuity A Good Investment? 
Video Transcript : Hello , everyone . I 'm Steve Savant , Syndicated Financial Columnist and host of the weekly online talk show , Steve Savant 's Money : The Name of the Game . I 'm answering questions from insurancelibrary.com , and today 's question is : is an annuity a good investment ? Well , remember there are several types of annuities . And depending upon which annuity we 're talking about , they 're all deferred annuities that we 're talking about ; and it could be fixed , it could be indexed , it could be variable . Fixed rates would be generally interest rates that are depended on the Treasuries . Most carriers buy Government debentures , and indexing is based on indices both foreign and domestic . And the good thing about that is , is that you have upside potential without any downside risk . Just keep in mind that you do have policy expenses to pay for . Variable annuities are more market-driven and they have exposure to risk , and you could lose your principle . You need to take a risk tolerance test before you get into it . But all three have their place . You have to find out , is this an investment for you ? Well , that 's our consumer question for today . If you have any questions , just submit them to www.insurancelibrary.com . 