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Monday, July 03, 2006

Annuity


The annuity is an investment vehicle used for retirement. It is also known as a sum of money given to an insurance company, so that a lifetime income can be provided in the future.

Types of Common Annuities:

Fixed Annuity - is an annuity where you give an insurance company a certain amount of money and the insurance company guarantee a rate of return.

Variable Annuity - invests your money in a portfolio of separate accounts.

Equity Indexed Annuity - is an annuity that assurance a minimum rate of return.

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