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Annuity

What is an annuity? An annuity is a financial services product that provides a stream of payments to an individual in exchange for a lump sum payment or series of payments. There are 2 main types of annuities: deferred and immediate. Deferred annuities allow the annuitant to make payments over time and begin receiving payments at a later date. Immediate annuities begin making payments to the annuitant (the person receiving the payments) shortly after the purchase of the annuity.

They can be a useful tool for retirement planning. They can be used for individuals looking to generate income during their retirement, as they provides a guaranteed stream of payments that can help to supplement other sources of income such as Social Security or a pension. An annuity can also be used for tax planning purposes, as the payments received may be taxed differently depending on the type of annuity and the individual’s tax situation. To learn more, please visit this page on finStream: https://www.finstream.tv/videos/annuities/

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