Annuities can be a big part of retirement strategy. An annuity is designed to accept and grow funds and then, upon annuitization, pay out a stream of payments to the individual.
Types of Annuities
Fixed Annuities
Deferred Annuities
Variable Annuities
Indexed Annuities
Income Annuities
Single Premium Immediate Annuity
Benefits of Annuities
Receive tax-deferred growth and compounding within the annuity contract
Guaranteed rates of return on investment
Guaranteed lifetime payments if you annuitize
Withdraws are subject to ordinary income tax and if taken prior to age 59 ½ may be subject to a 10% federal tax penalty.