In general terms, annuities allow you to accumulate tax-deferred funds for retirement and then receive a guaranteed income.  This guaranteed income is payable for life or for a specified period of time: generally a term of five or ten years.  Annuities are offered by insurance companies and sold through licensed agents.  Be sure to find a licensed agent to assist you with your annuity questions. 

Some information regarding Fixed Annuities:

1.  Fixed annuities offer a minimum interest rate guaranteed by the issuing insurance company.

2.  In most cases, with a fixed annuity, a set minimum annuity benefit is also guaranteed.

3. With a fixed annuity, the consumer minimizes risk associated with other types of investments and receives a relative safety of principal and stable investment returns.

4.  In fact, a fixed-rate annuity is often likened to a bank CD, but typically offers an even higher minimum interest rate and greater security.

5.  With a fixed-rate annuity, you receive your set amount no matter if the market goes south, interest rates decline or the insurer has an unprofitable year. This is a no-risk investment very popular with conservative investors and for those who need to rely on exact returns on their investments.

Find an insurance company and/or licensed agent to help you better understand these variables and determine which type of annuity is best for your financial future and needs.  For example, the fixed-rate annuity is ideal if you want to have the security of a guaranteed interest rate.  However, the variable-rate annuity is preferable if you want to increase your gains as the market potentially grows.