Variable annuitiesallow you to choose from a menu of investment options. These options could include mutual funds, bond funds, or money-market accounts. One version of a variable annuity, which is called anequity-indexed annuity, tracks a specific stock index such as theS&P 500. Opting for a...
Regular payments.Depending on the type of annuity you choose, you may or may not know the amount of your annuity payouts. But you will be able to count on getting a check at the same time each month (or whatever your contract dictates). Money for beneficiaries.Many annuities offer guarante...
A variable annuity is a deposit with an insurance company like a regular annuity. The big difference is that you decide how to invest the money and you have many choices (including growth mutual funds). Each company has a set menu of funds to choose from – and you can only invest ...
You will be given the option to choose the guaranteed income period, typically between three and ten years. In most cases, you will be offered a higher annuity rate for holding your contract in place for a longer period. So, to distinguish deferred annuities from immediate annuities, we have...
Within the deferred annuity category, there are three primary types: 1.Annuities that pay a fixed rate of interest on the premium dollars deposited. 2.Variable annuities that allow the contract owner to choose and manage investments which operate in similar fashion to non-qualified mutual funds. ...
There are several types of annuities to choose from, including fixed annuities, variable annuities, and indexed annuities. Here’s a breakdown of each: Fixed Annuities:With a fixed annuity, you receive a set amount of income at regular intervals, either for a specified period or for the rest...
In many cases, the qualifying annuity is a variable contract and is the only vehicle offered within the plan, with the variable subaccounts constituting the choices available to plan participants. There are many types of annuities to choose from depending on a variety of factors from retirement ...
Annuity Objectives What is an Annuity How are Annuity Premiums Invested? A Closer Look at Indexed Annuities UP NEXT: Why Choose an Indexed Annuity?Annuity Objectives ^TopGet Annuity Quotes and Rates Did you know that an annuity can be used to systematically accumulate money for retirement ...
The insurance company:The insurance company drafts the annuity contract, collects premium payments and provides annuity payouts. Types of annuities There are three basic types of annuities: fixed, variable and indexed. Annuity owners can also typically choose between an immediate or a deferred annuity...
The income from an annuity is typically taxed at regular income tax rates, not long-term capital gains rates, which are often lower. Understanding Annuities Most buyers of annuities aim to create a steady stream of income as retirement income. They pay for the annuity either with a lump sum...