Know your annuities
You probably know that annuities are a good insurance means. But usually, most people don’t know much else about this form of investment. So let us examine the common types of annuities on offer in the market. One of the most common types of annuities is the fixed annuity. With a fixed annuity, you will pay a fixed amount each month. Quite a few people treat a fixed annuity as a personal pension plan.
The other type is the variable annuity where the amount you collect each month depends on the performance of the stocks, bonds, or other investments in the underlying portfolio. This amount is variable. Then there are annuities indexed to stock market performance. They are known as equity-indexed annuities. They are supposed to shield the investor from stock market losses by going up when share prices rise but not dropping when they fall.
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