An annuity is a contract with an insurance company that provides a steady stream of income for a specified period of time, or for the rest of your life. Annuities can be a valuable tool for retirement planning, as they can provide a guaranteed income that can help you maintain your standard of living in retirement.
There are two main types of annuities: immediate annuities and deferred annuities. Immediate annuities begin paying out income right away, while deferred annuities allow you to accumulate money for a period of time before payments begin. The type of annuity that is right for you will depend on your individual circumstances and financial goals.
