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What's an Annuity?

An annuity is an insurance product that pays out income, and can be used as part of a retirement strategy. This is especially true for folks nearing retirement age when your risk tolerance is slim to non-existent.

Here’s how an annuity works: you make an investment in the annuity, and it then makes payments to you on a future date or series of dates. The income you receive from an annuity can be doled out monthly, quarterly, annually or even in a lump sum payment.

The size of your payments is determined by a variety of factors, including the length of your payment period.

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