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| Which type of annuity should I choose? |
| There is no single annuity that fits everyone. Choose the one that best reflects your financial goals, your stage in
life, your financial means and your comfort with risk. No matter what your financial goals are, however, you can probably find an
annuity that suits you. The first question is whether you want a deferred or an
immediate annuity. |
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If you are accumulating funds for retirement, you probably want a
deferred annuity. With this you will not be drawing
any income from it until retirement. |
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If you want to convert a lump sum into a stream of income, you probably want an
immediate annuity. |
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A fixed-rate annuity might be appropriate for you if you prefer minimal risk or already have part of your holdings in
higher risk investments. It is usually considered a wise choice for people who value a bit of stability in their
financial holdings or want to know the exact return on the annuity purchased. |
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| The equity-indexed annuity falls somewhere between fixed-rate and variable annuities in terms of risk and potential
reward. An equity-indexed plan offers the potential for higher returns than a
fixed-rate annuity but less risk than a variable product.
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