Annuities may be one of the most common, most utilized, yet most misunderstood financial products available to consumers today. In fact, many investors have no idea that there are actually multiple different and unique types of annuities available to them. Instead, many people have been misled by both the media and certain financial personalities who misrepresent and lump all annuities together as if each one works exactly the same.
So, what exactly is an annuity? According to the dictionary, an annuity is an amount of money that is systematically paid to a person for a specified period of time, often for the rest of his or her life. Essentially, an annuity can be used as a tool to help people create another income stream. Today there are various different types of annuities available to consumers, and it’s often likely that it would make sense for you to have at least one of them in your overall retirement plan.
Variable Annuities, Fixed indexed annuity, and Fixed Annuities are generally considered for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not participate directly in any stock or equity investment or index. Annuities are not deposits of or guaranteed by any bank and are not insured by the FDIC or any other agency of the US. All guarantees are solely backed by the financial strength and claims paying ability of the issuing insurance company and compliance with product terms. Insurance products, including annuities, are offered through Mike Morgan, a licensed insurance agent in the state of Texas.