Annuities are financial instruments meant for an entity like a company or person(s) to pay into over time (the accumulation phase) and once it is mature  pays out over time ( the distribution phase). Annuities can pay a fixed interest rate just like a Certificate of Deposit or it can mimic a stock market index like the SP500, NASDAQ, etc., however, unlike the stock market index the annuity will not go below 0 for a rate of return. Annuities grow tax free unlike CDs, but usually have longer surrender periods and you must be 59 1/2 to access the funds penalty free.

There are some great opportunities, for those individuals who are retiring and looking for security, in the fixed annuity arena. With the stock market turmoil these days it can be very reassuring to have part of your money in a fixed income product like an annuity. You can contact me concerning the latest rates for fixed annuities.