What is an Annuity?
Despite the fact that many people are familiar with the term ‘annuity’, many might not understand what it actually means or how it can be used to help them plan ahead for a successful financial future.
Simply put, an annuity is an insurance product that will pay you income based on money that you have previously put in. An annuity is commonly used as part of a retirement strategy. They are often popular choices for investors who wish to see a regular and steady income stream in their retirement. According to the Government Accountability Office, annuities can be an important part of an overall retirement plan.