ANNUITIES…and Preparing For Retirementby John McCartin
What Is an Annuity?
An annuity is a contract sold by life insurance companies that guarantees a fixed or variable payment to an annuitant either immediately, or at some future time – usually retirement. Annuities accumulate tax-deferred however; funds may not be withdrawn until the age of 59 ½ without incurring a 10% penalty. There is no limit as to the amount of money you can contribute to an annuity. (more…)