Annuities are products that provide a fixed income stream. They are highly customizable and can offer tax advantages, payment periods tailored to your needs, protection against losing your initial investment and options to transfer money to your beneficiaries. Consumers often use annuities to guarantee income for life and to help fund retirement.
Annuities can be optimized for income or long-term growth, but they are not short-term investment strategies. These products appeal to people whose objectives include long-term financial security, retirement income, diversification and principal preservation
An annuity is a customizable contract issued by an insurance company that converts an investor’s premiums into a guaranteed fixed income stream. The type of annuity you purchase determines your future annuity payments. The primary benefits of buying an annuity include principal protection, the potential for guaranteed lifetime income and the option to leave money to your beneficiaries. Some annuities may also be optimized to help pay for long-term care.