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The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other regular interval of time. Annuities may be calculated by mathematical functions known as "annuity functions". An annuity which provides for payments for the remainder of a person's lifetime is a life annuity. An annuity which continues indefinitely is a ...
A deferred annuity that permits allocations to stock or bond funds and for which the account value is not guaranteed to stay above the initial amount invested is called a variable annuity (VA). A new category of deferred annuity, called the fixed indexed annuity (FIA) emerged in 1995 (originally called an Equity-Indexed Annuity). [5]
Annuities are financial products sold by insurance companies. They’re regulated through a combination of state and federal oversight, with most of the responsibility falling to state insurance ...
Indexed annuities are a type of fixed annuity which are regulated and distributed in the same manner as fixed annuities (through licensed insurance agents). Indexed annuities are a conservative safe money place for retirement dollars. [4] Indexed annuities usually provide a purchaser with various options for interest crediting.
Annuities come with many rules and restrictions that can be difficult to understand. Misunderstanding these terms can be expensive, whether due to taxes, fees or choosing the wrong type of annuity.
Like any source of retirement income, annuities have their pros and cons. Understanding these can help you make an informed decision about whether an annuity is right for you. Advantages of ...
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