An annuity is a product that is typically used to save for retirement in a tax-deferred manner, generating regular payments in place of a paycheck during retirement.


Fixed Annuities offer a guaranteed rate of return for a set period of time. Fixed annuities usually provide a higher interest rate than CDs or Money Market accounts.


An Indexed Annuity provides a guaranteed rate of return with the possibility of a higher rate of return. The annuity is compared to an index fund such as the S&P 500, and if the index fund performs to a certain level or higher, the annuitant may receive a higher return than the guaranteed rate if the annuitant holds on to the annuity for the contract period.