MoMo Productions / Getty Images An annuity is a contract between a buyer and an insurance company that provides the buyer with a regular series of payments in return for a lump-sum payment.

Commissions do not affect our editors' opinions or evaluations. An annuity—which is a contract with an insurance company that provides income—may be a good option as part of your retirement plan.

There are two basic types of annuities: deferred and immediate. With a deferred annuity, your money is invested for a period of time until you are ready to begin taking withdrawals, typically in ...

Typically you should consider an annuity only after you have maxed out other tax-advantaged retirement investment vehicles, such as 401(k) plans and IRAs. If you have additional money to set aside ...

A $750,000 annuity can generate income without risking the principal. Different annuity types, including guaranteed income annuities, act as a shield against market volatility and an insurance ...

A fixed-rate annuity — also known as a multi-year guaranteed annuity — acts much like a bank certificate of deposit (CD). There’s a set interest rate for a set period. For example ...

Annuities are designed to build wealth and income for your retirement through tax deferral. Interest earned in a deferred annuity (the most popular type) is not taxed until withdrawn. Deferring ...