Understanding Annuities

Barbara Friedberg explains how annuities work:

1. You purchase an annuity from an insurance company with either a single payment or ongoing contributions.
2. The money in your annuity account grows at an interest rate or predetermined rate associated with a specific market rate.
3. Upon retirement, the money in the annuity account is annuitized — converted into an income stream — or withdrawn in a lump sum.

There are two broad types of annuities: immediate and deferred. Within each of these categories are fixed- or variable-payment options. Read the details at:

https://www.gobankingrates.com/investing/best-annuities-financial-plan/