| How do I want to pay into my annuity — single or flexible premiums? |
 |
With a single-premium annuity, you pay the issuing insurance company a one-time lump sum. The required minimum contribution will vary. |
|
With a flexible-premium annuity, you make a series of payments to the insurer over time.
You determine the payment schedule (monthly, quarterly, semi-annually or annually) and amounts (they can remain steady or fluctuate). |
| How do I want my money to
be allocated — fixed or
variable? |
|
Fixed annuities earn a steady interest rate set by the insurance company and guarantee an income stream for your lifetime or a specific duration.
Visit www.sec.gov/answers/annuity.htm for more details. |
|
Variable annuities let you allocate your money among professionally managed stock, bond and cash equivalent portfolios.
Payout amounts may vary with portfolio
performance. They offer greater potential
returns but are riskier than fixed annuities.
Visit www.sec.gov/answers/annuity.htm for more details. |
| How do I want my money to be paid out — fixed or variable? |
|
Fixed payout is a guaranteed stream of payments over the life of the annuity.
The payout rate is set by the insurance company and the fixed payout amount may be made monthly, quarterly, semi-annually or annually. |
|
Variable payout is a stream of payments where the payout amounts may vary with investment performance. |
| How soon do I want payments to begin — immediate or deferred? |
|
Immediate annuities turn the money you provide into regular income right away — usually within 1 to 3 months. |
|
Deferred annuities begin regular payouts in the future. A portion of early withdrawals may be subject to a surrender charge. |
Basic Money Management
Basic Money Management
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