Annuities are long-term investments. They are primarily used to plan for your retirement years because they can be structured to pay out funds upon annualization in different ways to suit your needs and potentially help you reach your long-term goals.

Fixed annuities are a good way to receive a relatively safe, steady return on your money based on a contract signed with an insurance company, while variable annuities depend on the performance of your investment choices. Variable annuities involve market risk, including fluctuating returns and possible loss of principal. Early withdrawals before the age of 59 ½ may result in additional fees and/or a 10% federal tax penalty. All annuity guarantees rely on the claims-paying ability of the issuing company.