Fixed annuities are a great option for investing for retirement or other long-term financial goals. They can provide a guaranteed income stream for retirement and help you protect against the possibility of outliving your financial resources.*
Basically, the insurance company is promising to make a series of payments to you in exchange for a premium payment that can be made in a lump sum or in a series of installments. It can also be used to accumulate money for the future. Fixed annuities can create an immediate or deferred income stream depending on the option you choose.
- deferred – allows you to accumulate funds over time and has a variety of future payout choices. Because earnings are tax deferred, your funds can grow faster over time.*
- immediate – allows you to convert a lump sum of money into a guaranteed payout for as long as you live or a certain number of years.