Annuities are financial products that provide a steady stream of income over a period of time. They are typically used as a retirement savings tool or to provide a guaranteed income during retirement.

When you purchase an annuity, you make a lump sum payment or a series of payments to an insurance company. In return, the insurance company promises to provide you with regular income payments for a specified period of time or for the rest of your life.

There are several types of annuities, including fixed annuities, variable annuities, indexed annuities, and immediate annuities. Each type has its own features and benefits, so it’s important to choose the one that aligns with your financial goals and risk tolerance.

There are several reasons why you should consider annuities. First, they provide a guaranteed income stream, which can be especially beneficial during retirement. Second, annuities offer tax-deferred growth, meaning you don’t have to pay taxes on the earnings until you start receiving income. Lastly, annuities can be customized to fit your specific financial needs and goals.