Thursday, August 6

Tag: annuity

Advantages and Disadvantages of an Annuity
Finance and Business

Advantages and Disadvantages of an Annuity

We make sound investments to achieve our financial goals depending on our needs and ambitions. There are different types of investments where one can invest directly or indirectly. These include bonds, mutual funds, stocks, cash equivalent investments, etc. An annuity is one type of tax-deferred investment option available. So this article delves into the characteristics of an annuity, how it works, and its pros and cons. WHAT IS AN ANNUITY? An annuity is a series of payments or a fixed sum of money paid periodically at equal intervals. It is a long-term contract between a customer and their insurance company where they either pay a lump sum of money or periodic payments. And in return for this, you receive regular disbursement immediately or over a period of time. In other words, this i...