An annuity is a long–term financial vehicle designed for retirement. It’s a contract between you and an insurance company: you pay the insurance company a sum of money called a premium – either in a lump sum or over a period of time – in return for guaranteed payments later, typically at retirement. Annuities may impose a surrender charge for cashing out your policy or making withdrawals within a certain number of years, so you should probably only consider an annuity if you don't plan on needing access to the funds in the foreseeable future.
Annuities offer important benefits.
Potential interest
Income for life and other options
Tax deferral
Death benefit protection
Fixed index annuities are different.
A fixed index annuity earns interest based on
changes in an external index. This is different
from traditional annuities, which credit interest
calculated at a fixed rate set in the contract.
Ask yourself am I suited for a Annuity?
What are my long-term savings goals?
Do I want a retirement income that cannot be outlived?
Do you desire tax simplicity - no annual 1099s?
Do I want family protection in the form of guaranteed death benefits?
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