Who Should Purchase A Variable Annuity? 
That is a great question ! Annuities can be a great part of a retirement plan , but they are n't suited for everyone , because of the type of investment that they are . Before an agent can legally sell you an annuity , they have to do a `` suitability analysis '' . In this analysis , we sit down and discuss your current financial status , your cash flow issues , and your tolerance for risk , among other things . If you are financially suited for the purchase of an annuity , it is often the risk tolerance that determines which type of annuity is best for you . If you have a very low tolerance , then a variable annuity would not be a suitable annuity for you , while a fixed annuity probably would be . If you had a moderate risk tolerance , but an aversion to losing money , the variable annuity again might not be suitable for you , but an indexed one might be . If you have a high risk tolerance , and like to play the market , and keep involved in the transactions , then this may be the annuity for you . I hope that answers your question , please feel free to drop me a line if you 'd like more details , ok ? Thanks for asking ! 