What is an Annuity?
Annuities are becoming more and more popular in today’s volatile market. Many people are looking to lock in gains they have made in other investments and transition to safety and guarantees.
An annuity is a contract between you and an insurance company that allows your earnings to grow and compound tax-deferred. This is a powerful benefit that you can use to help accumulate wealth for retirement or other long-term financial goals. The word annuity literally means “annual payments”. When you buy an annuity, the insurance company agrees to pay you an income for a specified period of time. Whether these payments start right away, or at some future date, determines what type of annuity you have; either deferred or immediate.