Annuity Basics

While an annuity specialist can certainly help you to wade through all of the fine print knowing and understanding annuity basics can give you a good running start.

Annuity basics. Annuities are financial products intended to enhance retirement security. You buy an annuity by making either a single payment or a series of payments. Annuities are financial products intended to enhance retirement security.

This information can also give you a good solid foundation regarding. Finding the right information can be tough. What are the different types of annuities fixed variable and indexed.

Timing Immediate Vs. An annuity is a long-term insurance product that provides guaranteed income. Similarly your payout may come either as one lump-sum payment or as a series of payments over time.

They are a common source of retirement income because they provide a steady stream of payments at regular intervals and because their earnings grow tax-free until you withdraw funds. There are many categories of annuities. An annuity is an insurance product that pays out income and can be used as part of a retirement strategy.

In its simplest form you pay money to an annuity issuer and the issuer pays out the principal and earnings back to you or to a named beneficiary. Its no surprise that annuities cause so much confusion. The two most common ways to categorize annuities are by.

Annuities can be very good things for some of us and a disaster for those of us who have not been made aware of the pitfalls and traps that in turn can easily befall them. Life insurance companies first developed annuities to provide income to individuals during their retirement years. A variable annuitys returns are tied to the stock market or other investments the owner chooses and gains and losses are based on.