There are a few different types of annuities that are available to use when planning for your retirement years.
The first one is called an immediate annuity. This is when you begin to receive payments soon after you make your initial investment into the annuity from the insurance company that offered it. For example, you might consider purchasing an immediate annuity as you approach retirement age. This type of annuity starts to pay out soon, as specified in the annuity contract.
The other type of annuity is called a deferred annuity which accumulates money while the immediate annuity is one that pays out right away. Deferred annuities can also be converted into immediate annuities when the owner wants to start collecting payments.
now there are to other basic factors to mention while describing some basic annuities and that is the 2 categories, annuities which can also be either fixed or variable as it depends on whether the payout is a fixed sum of money, tied to the performance of the overall market or group of investments, or a combination of the two.
There are several other types of annuities available beside the ones mentioned in this brief article. A financial adviser or insurance agent can provide you with the product that may best fit your unique situation.
