An annuity is a type of financial investment that can help to round out an investment portfolio. Annuities are available in many different forms, with a variety of benefits and terms. It's important to discuss your annuity options with your financial planner before investing in annuities.
The Meaning of Annuity
To understand what an annuity is, it's helpful to know that the word annuity refers to the word annual. So annuities are based on a yearly contract schedule.