Fixed and variable annuities can provide a steady stream of income
Benefits of investing in annuities
- Guaranteed income for life - the only investment product that can provide guaranteed income for life, annuities are contracts between investors and insurance companies.
- Tax benefits - annuities offer tax-deferred growth potential, which means your money can compound and grow tax-deferred until a withdrawal or an annuitized payment is made.
- Hedge against market fluctuations - annuities can offer several different guarantees that provide protection during market downturns, and may, for an additional cost, include guaranteed growth, guaranteed principal protection, or a stream of income that is guaranteed for life and will never decrease.
- Higher payouts - annuity payments include interest and a portion of your principal contribution, and may even continue after you've recouped your principal, giving you higher payouts than comparable investments that provide income.