Vanguard says “Annuities have features that can help ensure you’ll have the money you need when you retire.” Further, “[u]nlike other retirement savings products, there’s no limit to how much you can invest on an after-tax basis or for how long, although there may be age and premium restrictions for specific products.”
Investment annuities save money for retirement and beneficiaries, that is you make an investment in the annuity, and it then makes payments to you in the future. Structured settlement annuities utilize annuities in order to provide periodic payments to claimants in personal injury cases or lottery payouts. Two basic annuity types are Income Annuities and Deferred Annuities.
Annuity owners pay an insurance company regular premium payments or a one-time lump sum in exchange for steady income payments that can last for the rest of their life or a fixed amount of years.
Annuities may be sold for a lump sum of cash when unexpected circumstances arise and you need immediate funds. An annuity can be purchased either as a lump sum or with premiums. Owners can expect to receive less than face value due to a discount that is in part based on time.
A leader in the fixed index annuities marketplace, American Equity Investment Life Holding Company is licensed to sell in all 50 states and Washington, D.C. The company’s primary focus is annuities, but it also manages investment spreads and risk to earn predictable returns. The company offers fixed index, traditional fixed, and immediate annuities.
Operating as a subsidiary of Mutual of Omaha Insurance Company, United of Omaha Life Insurance Company is another provider of annuity products. They are a full-service, multi-line provider of insurance and financial service products for individuals, businesses and groups throughout the United States. Products offered include both income and deferred annuities.
Headquartered in metro Denver, Great-West Financial® serve customers nationwide through offices around the country. Their products range from life insurance, annuities and executive benefits products marketed under their Great-West brand to retirement savings products and services provided by their Empower brand. The company offers variable annuity products, including Great-West Smart Track® II — 5 Year, Schwab Advisor Choice Variable AnnuityTM, Great-West Smart Track Advisor Variable Annuity, Schwab OneSource Choice Variable AnnuityTM.