If you have a 401k or Roth IRA, you probably feel like you’re doing everything you can to be financially prepared for retirement, right? Maybe you are, but you might also benefit from incorporating an annuity into your savings plan.
So how do you know if you need an annuity?
Let’s look at the basic characteristics of these unique savings vehicles, how they work, and most importantly, if you would benefit from having one.
What Is an Annuity?
An annuity, by definition, is simply an agreement to make a series of payments of a certain amount of money to a specified party for a predetermined period of time. Annuities also refer to a commercial insurance contract offered by a life insurance company.