Annuities are an excellent tool to help you plan for your financial future.

An annuity is a contract with an insurance company, in which the insurance company promises to pay the annuitant income on a regular basis for a specific time period that the annuitant chooses.  More simply put, a person (the annuitant) puts money into an annuity and then at a time of their choosing, that person can begin taking regular payments from their annuity (generally in retirement).  There are immediate annuities, where someone puts money into an annuity and elects to take regular income payments immediately.  There are also deferred annuities.  With deferred annuities, someone can put money into annuity, leave the money in the annuity for potential growth and at some time in the future elect to take regular income payments.

Fixed Annuities

Fixed Annuities are a type of deferred annuity.  A fixed annuity generally has a fixed interest rate that is guaranteed for a specific number of years.  This type of annuity is a safer investment for someone who is retiring or close to retiring.

Indexed Annuities

Indexed Annuities are another type of deferred annuity.  An indexed annuity has market-linked growth, but the interest rate will never be less than zero even if the market goes down.  This type of annuity is good for someone who has little more time to let there money grow and also if they are not comfortable with market risk.



To learn more about annuities and how they can be great addition to your financial portfolio, contact us today.