Annuities are flexible, tax-deferred insurance products designed to help you achieve long-term financial goals and provide a source of retirement income.
An annuity is essentially a contract between you and an insurance company. In return for your payment, the insurance company agrees to pay you income at some future time, usually retirement. With no limit to the amount you can contribute, annuities allow you to create your own tax-deferred retirement plan. Though many types of annuity plans exist today, all generally allow you to choose when and how much you will contribute, as well as when and how you will withdraw your money.