The purpose of annuities is to create a guaranteed fixed income stream, either now or in the future, as part of your investment portfolio. While many older investors use annuities to create a guaranteed income in retirement, they are not generally recommended for younger investors because they are illiquid and subject to withdrawal penalties.
The sheer number of annuity options can be dizzying, making it difficult to determine if an annuity is right for you. Allow your personal objectives to be the driver before you make a selection and sign a contract. Your trusted financial adviser can help you work through the range of options.
