In the U.S., an annuity is a contract for a fixed sum of money usually paid by an insurance company to … See more

Pros 1. For deferred annuities, similar to 401(k)s or traditional IRAs, there are tax benefits associated with building capital by deferring the payment of taxes. 2. Unlike other retire… See more

Most annuities can be differentiated as fixed or variable annuities. However, there is a third category that is becoming increasingly common, called "indexed annuities," … See more

Choosing between an immediate or deferred annuity is just as important as choosing between a fixed or variable annuity. Immediate Annuities An immediate annuity inv… See more

Canceling an annuity contract is called surrendering an annuity. Most insurance companies charge a surrender fee if canceled within the first 5 to 9 years of ownership. … See more