Concrete

ANNUITIES

BUYING AN ANNUITY

READY TO RETIRE?

RETIREMENT QUIZ

WHAT IS AN ANNUITY?

In its most general sense, an annuity is an agreement for one person or organization to pay another a stream or series of payments. Usually the term “annuity” relates to a contract between you and a life insurance company, but a charity or a trust can take the place of the insurance company.

There are many categories of annuities. They can be classified by:

Nature of the underlying investment – fixed or variable

Primary purpose – accumulation or pay-out (deferred or immediate)

Nature of pay-out commitment – fixed period, fixed amount, or lifetime

Tax status – qualified or nonqualified

Premium payment arrangement – single premium or flexible premium