Understanding Annuities
 

An annuity is a financial product designed to help you grow and protect your savings while providing a reliable stream of income, often during retirement. It works by allowing you to make either a lump-sum payment or a series of payments to an insurance company. In return, the annuity provides the potential for tax-deferred growth and, depending on the type of annuity, guaranteed income for a set period or for life.

There are several types of annuities to suit different financial goals:

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• Fixed Annuities offer a guaranteed interest rate and predictable income.

• Variable Annuities allow you to invest in a range of options, with income varying based on investment performance.

• Indexed Annuities link growth to a market index, providing potential for higher returns while offering downside protection.

Annuities can be a useful tool for retirement planning, providing financial security and peace of mind. They can help supplement other retirement income sources, protect against outliving your savings, and offer options for legacy planning.