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a fixed interest rate set each year by the insurance company, and you defer your withdrawals to a later date.
Variable annuity: This type of contract is a vehicle for stock, mutual funds, and other equity investments. You can do a one-time deposit or contribute throughout the life of the contract. You have choices as to how your money is invested in an offering of mutual funds, and you may invest conservatively or aggressively. The growth of your account value will vary, depending on your choice of investments.
Creating Savings Through Insurance 57
