ANNUITIES
Annuities are financial products designed to provide a steady stream of income, typically during retirement. They are contracts between you and an insurance company where you make a lump-sum payment or series of payments in exchange for regular disbursements in the future. Annuities can help ensure you have a reliable income source for a set period or for the rest of your life.
Types of Annuities
Fixed Annuities
Fixed annuities offer a guaranteed return on your investment and provide fixed payments over time. They are considered low-risk and provide predictability.
Variable Annuities
With variable annuities, your payments are invested in a range of investment options, such as mutual funds. This means the returns can fluctuate based on market performance, offering the potential for higher growth.
Indexed Annuities
Indexed annuities combine features of fixed and variable annuities. They offer returns based on a stock market index while providing a guaranteed minimum return, balancing growth potential with some protection against loss.
Choosing the Right Annuity
When considering an annuity, it’s essential to evaluate your financial goals, risk tolerance, and income needs. Consulting with a financial advisor can help you determine the best annuity type for your situation.