Q: What is an Annuity?
A: An annuity is an asset that pays a constant amount each year to the holder until the annuity expires and/or the holder of the annuity passes away.
Q: I want to know what interest rate my investment will be before I purchase an annuity. Should I choose a fixed or variable rate annuity?
A: You want a fixed rate annuity. The return rate is stated up front as part of the investment process.
Q: What return rate do I get with a variable rate annuity?
A: Your return rate depends on the performance of the stocks and bonds your money is invested in. It is important to look at the past performance of the firm you invest in when choosing a variable rate annuity.
Q: My retirement is still many years away, but I want to save more than I can contribute to my 401(k). What sort of annuity should I get?
A: You should look into deferred annuities, which will provide you with income once you retire, whenever that may be.