RECENT NEWS  Jan 11  Comment 
I'm 59 years old and plan on retiring within the next year. My adviser is recommending that I invest $1 million, about 25% of my nest egg, in annuities to generate retirement income. That percentage seems high to me. Is there a rule of thumb about...
Motley Fool  Jan 9  Comment 
Annuities offer certain tax benefits that make them a smart retirement savings tool.
Motley Fool  Jan 5  Comment 
If you're retired, or just want to get a head start on retirement planning, here are some things you should know about annuities.
Motley Fool  Dec 29  Comment 
Why buy a retirement annuity? Because it's good for retirement. It can deliver regular income that can fund a more comfortable future. Here's some help zeroing in on the best annuities.
Motley Fool  Dec 28  Comment 
You can essentially buy yourself a pension with an annuity -- setting up a dependable income stream for your retirement. Here are some smart annuity moves.
Motley Fool  Dec 21  Comment 
Annuity income isn't 100% guaranteed, but it's still pretty safe -- if you go about buying yours sensibly. Here are some valuable tips.
Motley Fool  Dec 19  Comment 
An annuity can give you more financial security in retirement, offering reliable income -- perhaps for the rest of your life. Here are some tips that can help you avoid costly mistakes when annuity shopping.  Dec 14  Comment 
I'm retired and have about 40% of my nest egg in stocks and 60% in bonds. I'm wary of the stock market, so I'm considering moving part of my savings into an annuity. Do you think that's a good idea? --A.G.
Motley Fool  Dec 10  Comment 
Before you buy an annuity, make sure you really understand how it works.


A financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years.

Annuities can be structured according to a wide array of details and factors, such as the duration of time that payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant lives.

Annuities can be structured to provide fixed periodic payments to the annuitant or variable payments. The intent of variable annuities is to allow the annuitant to receive greater payments if investments of the annuity fund do well and smaller payments if its investments do poorly. This provides for a less stable cash flow than a fixed annuity, but allows the annuitant to reap the benefits of strong returns from their fund's investments.

The different ways in which annuities can be structured provide individuals seeking annuities the flexibility to construct an annuity contract that will best meet their needs.

All annuities have a free look period, a death benefit, guarantees, and annuitization options. Most have surrender periods.

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