Annuity / Retirement Planning

An annuity is a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future, usually retirement.

Here's an easy description:

Imagine you have a sum of money, and you're not sure how to make it last for the rest of your life. An annuity is like a special savings plan you buy from a trustworthy company. You give them your money, either as a lump sum or through periodic payments, and in return, they promise to give you regular payments back, usually on a monthly basis.

These payments can last for a set number of years or even for the rest of your life, depending on the type of annuity you choose. Annuities are like a financial safety net that can help ensure you have a dependable source of income, even if you live longer than expected or if other investments aren't performing well.

In a way, it's a bit like having a personal pension plan. Annuities come in various forms, such as fixed annuities, variable annuities, and indexed annuities, each with its own features and benefits. It's important to carefully consider your financial goals and consult with a financial advisor to determine if an annuity is the right choice for you and which type suits your needs best.