An annuity is an investment set up with an insurance company that will provide the owner regular reimbursements in exchange for a lump sum payment. It is typically used as a retirement plan alongside a 401k. There are three main types of Annuities: Fixed, Variable, and Indexed annuities.
Fixed Annuities are low risk and pay out a guaranteed amount. The downside to this is that the annual gains are not as high as the other options.
Variable Annuities, on the other hand, has the potential to pay out a lot more. However ti is more risky as the funds are tied to the stock market.
Indexed Annuities is a mox of both. It insc