What Is an Annuity?

Juliette Fairley - What is an annuity?

Juliette Fairley explains that fixed annuities provide stable, predictable interest but don’t capture higher market returns.
Video Transcript
An annuity is an investment vehicle issued by an insurer that distributes periodic payment, and they are used generally to mitigate the risk of outliving your retirement assets. So the insurance company offers the investment vehicle for the annuity buyer, who then purchases or invests a lump sum in exchange for a cash flow of payment in the future.