1. Immediate Annuities: With immediate annuities, you start receiving payments immediately after making your initial investment. These payments can be made monthly, quarterly, annually, or on another schedule of your choosing.
  2. Deferred Annuities: With deferred annuities, there’s a waiting period before you start receiving payments. During this time, your investment grows tax-deferred. Once you start receiving payments, they can be fixed or variable, depending on the type of annuity you choose.
  3. Fixed Annuities: With fixed annuities, the insurance company guarantees a fixed rate of return on your investment. The payments you receive are predetermined and do not fluctuate with market conditions.
  4. Variable Annuities: With variable annuities, the value of your investment fluctuates based on the performance of the underlying investment options, typically mutual funds. This means your payments can vary based on market performance.
  1. Lifetime Income: An annuity provides a steady stream of income, which can be particularly beneficial during retirement when you no longer have a regular paycheck.
  2. Tax-Deferred Growth: With deferred annuities, your investment grows tax-deferred, meaning you don’t pay taxes on the earnings until you start receiving payments. This can help your investment grow faster over time.
  3. Death Benefits: Many annuities offer death benefits, which guarantee that your beneficiaries will receive a certain amount, typically the amount you invested, even if you pass away before receiving all the payments.
  4. Asset Protection: Depending on the laws in your state, annuities may offer protection from creditors and lawsuits, making them a valuable tool for asset protection.
  5. Predictable Returns: Fixed annuities offer predictable returns, providing stability and peace of mind, especially for those who are risk-averse or want to ensure a certain level of income in retirement.