Resultsbee.com

There are two basic types of annuities: deferred and immediate. With a deferred annuity, your money is invested for a period of time until you are ready to begin taking withdrawals, typically in retirement. If you opt for an immediate annuity you begin to receive payments soon after you make your initial investment.

Income for guaranteed period (also called period certain annuity). You are guaranteed a specific payment amount for a set period of time (say, five years or 30 years). If you die before the end of the period your beneficiary will receive the remainder of the payments for the guaranteed period.

An annuity fund is the investment portfolio in which an annuity holder's funds are invested. The annuity fund earns returns, which correlate to the payout that an annuity holder receives. Current average annuity rates fixed can expect between 3.60% and 5.25% ranging between 2 years and ten years in length.

Fixed annuities are essentially CD-like investments issued by insurance companies. Like CDs, they pay guaranteed rates of interest, in many cases higher than bank CDs. Fixed annuities can be deferred or immediate.

Options for Your Annuity. If your annuity no longer fits your needs, you don't have to feel trapped. You can sell your annuity payments for a lump sum, to free up your cash and use that money for current expenses or for reinvesting.

An annuity is an investment product issued by an insurance company designed to grow in value and then pay out a stream of guaranteed monthly payments starting at a later, set date usually corresponding to your retirement.