In simple terms, an annuity is simply a contract between an insurance company and yourself. Usually there are four that you will use. They are; variable, fixed, immediate, and indexed annuities. They can be purchased with a lump sum, or through numerous payments over your lifetime.Once retired, they’ll provide regular, periodic payments to you, in the time frame you designate. This provides you with income for your retirement years and is dependent on your financial goals, the value of your portfolio and your individual tax situation. This is why it’s important to have a financial planner help guide you through the process, in order to assure that you have a financially comfortable retirement.
Phillip Roy Wasserman