Annuities are unique investment products,
sold by insurance companies, that can help you save more for
retirement, generate a guaranteed stream of income in retirement, or
both. Annuities have helped millions of people prepare for retirement,
but because there are different types with different purposes, they can
be a bit confusing. Keep in mind, annuities generally fall into two
distinct categories: tax-deferred and income.
Tax-Deferred Annuities:
let you save more for retirement—even after you have maxed
out contributions to 401(k)s and IRAs.
Income Annuities: provide an
immediate guaranteed stream of income in retirement in exchange for a
lump sum of money.
