Lifetime Retirement Income (Annuity)

What Exactly Is an Annuity?

An annuity is a type of insurance contract issued and distributed by financial institutions to pay out invested funds in the future in the form of a fixed income stream. Annuitiesare purchased or invested by investors who receive monthly or lump-sum payments. The holding institution issues a future stream of payments for a set period or the rest of the annuitant's life. Annuities are primarily used for retirement planning, and they assist individuals to mitigate the risk of outliving their savings. A good understanding of several key terms is necessary:

Annuity (fixed Indexed)

Growth: Interest earnings are based upon the gains in a financial-market index.

Access: Up to 10% in most cases are accessible annually without fees or penalties. Upon execution of the lifetime income option, you will receive a predictable, guaranteed income for life.
 
Safety: Gains are locked in & cannot decline in the future from potential market index losses. Therefore, your principal and gains are protected.