There are five main types of annuities:
Fixed annuities pay guaranteed rates of interest. Account owners can draw income immediately or defer.
Variable annuities allow investors to choose from a variety of mutual funds.
Fixed-indexed annuities provide a variable interest rate and may also offer a guaranteed minimum income benefit. This type of annuity has a limited potential upside but may work well for a conservative investor.
Immediate annuities provide regular income payments to the account owner in exchange for one lump sum payment. This type of annuity may provide favorable tax treatment, and payments may include principal and interest.
Deferred annuities delay payments until at least one year from opening the account and provide guaranteed income for the future.
Talk to your Vic Fisher Insurance agent about which type of annuity is best for your financial future.