An annuity is a financial product that provides a steady stream of income over a period of time, typically in retirement. It is typically purchased from an insurance company and can offer tax-deferred growth opportunities.

There are several types of annuities, including fixed annuities, variable annuities, and indexed annuities. Fixed annuities offer a guaranteed interest rate, variable annuities allow for investment in various funds, and indexed annuities provide returns based on the performance of a market index.

When selecting an annuity, consider factors such as your financial goals, risk tolerance, and time horizon. It’s important to compare different annuity products, fees, and features to find the one that best aligns with your needs.

Annuities can come with various fees, including annual maintenance fees, surrender charges, and investment management fees. It’s crucial to understand these costs and how they may impact the overall performance of your annuity.

Some annuity contracts offer a free look period, during which you can cancel the annuity without penalty. After this period, you may still be able to make changes to your annuity, but there could be fees or restrictions involved.