What is an Annuity and How Does It Work?

Click on the image above to watch this Savvy Minute video.

What is an Annuity

Annuities have been around for a long time, but for most investors, they do not know what an annuity is.

So, let’s start with the basics. An annuity is a contract between you and an insurance company that usually covers principal protection, lifetime income or legacy planning. There are three types of basic annuities. A fixed, a variable and an indexed annuity.

It pays out a fixed stream of payments to you either immediately or in the future and is most often used as an income stream for retirees. You can buy an annuity by either making a single payment or a series of payments. Before deciding if an annuity makes sense for you, there is a lot more information about annuities to consider and learn about.

Catherine Magaña is a CFP® or CERTIFIED FINANCIAL PLANNER™ and Managing Partner at Savvy Women Wealth Management in Carlsbad California.

We run a Savvy Women Wealth Practice in Carlsbad, California offering financial planning and investment advice. Most of our clients are fun, engaging women who are driven to succeed both personally and professionally. They have spent most of their lives focusing on others and realize they must take more responsibility in their financial future. They don’t want to simply be told what to do they want to learn, become more engaged and accountable for their financial future.

If you would like to set up a free 30 minute financial assessment she can be reached at 760-692-5700, info@savvyup.com for private message or click on the following link to contact us directly https://savvyup.com/contact .

www.SavvyUp.com

Posted in Retirement Planning, SWWM Tagged with: , , , , , , , , , , , , , , , , , , , , , ,