What is an annuity? In simple terms, annuity is a type of long term investment that guarantees relative financial stability against fluctuations of the stock market. Usually, annuities require a single initial large sum investment and allow tax deferral.
Many investors today are misinformed about annuities because it’s hard to find a reliable website or annuity counseling. There is so much controversial information about annuities out there!
It’s because annuities today are not the same as they used to be in the past, the annuity industry is constantly and rapidly evolving. In order to get more investors in the challenging market conditions, financial firms have given the annuities a makeover, releasing new ultralow-cost, fixed indexed annuities that offer a broad array of alternative investments. Currently there is a wide assortment of different annuity products on the market, which are specifically tailored to a variety of consumer’s needs in mind, from providing an immediate retirement income to planning future education or just safely putting money away for a rainy day. It’s hard to find even two annuity plans that are exactly the same; each annuity product is unique and has its own advantages and disadvantages.