Annuities — Frequently Asked Questions

An annuity is a contract with an insurance company. In exchange for a payment (or series of payments), the insurer agrees to provide growth, future income, or both — depending on the type of annuity. People often use annuities to add a layer of guaranteed income or predictable growth to a retirement plan.

You fund the annuity, your money grows according to the contract's terms, and at some point you can convert it into income — sometimes income that's guaranteed for life. The specifics — how growth is credited, when income starts, what fees and surrender terms apply — vary widely by product, which is why comparing options matters.

Compare current rates side by side.

The most common categories are: • Fixed annuities, including MYGAs (multi-year guaranteed annuities), which credit a set rate over a defined term. • Income annuities, including SPIAs (single premium immediate annuities), which turn a lump sum into an income stream. • Other structures designed for different growth and income goals. We help you understand which category, if any, fits your situation.

It depends entirely on your goals, timeline, and the rest of your plan. Annuities can be valuable for guaranteed income or predictable growth, but they also involve trade-offs like liquidity limits and fees. The right answer is the one that fits you — and sometimes the answer is no. We'll tell you honestly.

A fixed annuity credits interest according to set contract terms. A variable annuity's value moves with underlying investment performance, which means more growth potential and more risk.

Annuity guarantees are backed by the issuing insurance company's financial strength, so the insurer's stability matters. As an independent firm, we can compare carriers rather than being limited to one. No financial product is risk-free, and we'll always walk you through the specific trade-offs before you decide.