What is an annuity?
An annuity is an insurance product which, in exchange for a sum of money, guarantees that the issuer will make a series of payments at some future date. These payments can be either level or increasing periodic payments for a fixed number of years or until the end of life. The main feature of an annuity is that it is a vehicle for distributing savings with a tax-deferred growth factor. The two general types of annuities are immediate and deferred annuities.
Unlike in the past, when life annuities were the main type of contract, today there are a multitude of different types of annuities.
Please contact us and we will help you decide which type of annuity is an appropriate addition to your retirement plan.