Income for life – Annuities have distinct advantages — but risks as well

Description

Abstract: An annuity is an investment product that delivers a steady income stream for the remainder of one’s life or for a specified term, but it’s important to understand the differences between annuities and other types of financial products. Annuities have some distinct advantages and disadvantages. This article poses questions that one should consider before buying an annuity and notes the different types that are available. Though they provide some measure of retirement security, annuities have some trade-offs, including costs and liquidity.