How a Fixed Annuity Fits a Retirement Plan
A fixed annuity is a contract with a life insurance company that provides income to those in retirement. The product allows the policyholder to deposit a lump sum which will grow to provide tax-deferred income later. The insurance company guarantees the rate of interest—fixed interest—you will earn on money deposited in the annuity contract. There are two main types of fixed annuities, deferred and immediate.
Original Article Source Credits: The Balance , https://www.thebalance.com/
Article Written By: Dana Anspach
Original Article Posted on: January 22, 2021
Link to Original Article: https://www.thebalance.com/how-does-a-fixed-annuity-fit-your-retirement-plan-2389021