What Is An Annuity?
an annuity is a financial product that is designed to pay out a steady amount of cash over time. annuities are generally used as a retirement vehicle to ensure regular income in later years. at their core, annuities are contracts between you and a financial institution. when you buy an annuity, you agree to pay a lump-sum upfront, or make a regular schedule for deposits to a financial institution, usually an insurance company. the company agrees to pay money out you starting out a particular date and to continue making payments ? for a fixed period like 20 years or until you or your spouse dies. these payments are called distributions. the money in pay-in is invested by the annuity company and grows until the date when distributions are scheduled to begin. as the annuity holder, you are responsible for the taxes on the distribution, but generally only for the income earned that top the original investment. the annuity contracts sets the age at which payments will start, what the payment intervals will be, and many other details. there are different types of annuities including fixed, variable, immediate, deferred, equity indexed and more. choosing an annuity depends on the income you want in retirement and the amount of risk you are willing to take. the goal of any annuity is to provide a stable, long-term source of income for the annuity holder.
- equity indexed・・・？→https://en.wikipedia.org/wiki/Equity-indexed_annuity