Here are some helpful definitions of commonly used accounts to help you begin your investment investigation. It is a generic term covering many different types of annuities, CDs, insurance policies and stocks. For information on what is taxed contact your financial advisor. IRAs don t require a consistent yearly deposit. A Roth IRA is something a little more specific.
Annuities can be IRAs and are like life insurance with no death benefit.
Or you can pay it in a lump sum. You also are not obligated to make the monthly payment. You can skip payments. This monthly income is sort of like a dividend income from stock. There are two different catagories of annuities.