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Learn How Fixed Annuities Work
Fixed Annuities Consumers are aware annuities exist, but they don’t always understand the pure definition of an annuity. Simply stated, an annuity is a contract sold by an insurance company designed to provide payments to the holder at specified intervals, usually after retirement. That’s the simplest way to put it. Inherent in all annuities are two phases, the accumulation and the annuitization phase. The accumulation phase is exactly as the name implies. It starts when you put money into the annuity. This is commonly called “funding” the annuity. This phase provides the owner the benefit of tax deferral. The money [...]
