what is an annuity

Is an Annuity Right for You? Key Considerations

Annuities are financial products that provide a reliable income stream, particularly during retirement, through contracts with insurance companies. They come in various types like fixed, variable, and indexed annuities, each catering to different financial goals and risk tolerances. While offering benefits such as guaranteed income and tax-deferred growth, they also present downsides including high fees and illiquidity.

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Fixed vs. Indexed Annuities: Key Differences Explained

This content explores the distinctions between fixed and indexed annuities, emphasizing their unique benefits and drawbacks. Fixed annuities provide guaranteed steady growth, ideal for conservative investors. In contrast, indexed annuities offer potential higher returns linked to market performance but come with complexities and caps. Understanding your financial goals is crucial for making an informed choice.

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