Annuity

An annuity comes in many forms, but a simple definition is that an annuity is a contract that converts a sum of money into a series of periodic payments for an agreed upon period of time. An annuity can be thought of as a financial vehicle that converts a pool of money into a stream of income. Annuities are most useful in addressing the financial planning needs of people in or approaching retirement. Annuities are unique in the financial world because they can provide protection against the risk or outliving one’s assets (longevity risk) by guaranteeing income payments in perpetuity or any other selected amount of time. Annuities can be viewed as a type of personal pension plan. Social Security is similar to an annuity in that money contributed over the course of one’s working years is converted into a series of periodic payments that provide income during retirement.

How can an annuity protect me from a volatile market?

Annuities can be very effective in providing protection against market

Are the companies that provide annuity products safe in the current upheaval of the banking and financial services industry?

There has been a ton of recent discussion in the press about the financial health of life and annuity insurance companies.  In particular, there has been discussion surrounding the health of insurance companies that have provided living benefit guarantees that accompany variable annuities.

Do you provide referrals to financial advisors that sell annuity products?

Not at the moment, although we are working on developing a resource that will connect site visitors with financial advisors.

Stayed tuned--the feature should be live within the next several weeks.

Glossary: 

High expenses or fees are one criticism I have heard regarding annuities. Can you explain the fee structure around annuities?

Annuities are products that combine insurance and, in the case of variable annuities,

Companies: 

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