Annuities are financial products that can provide a steady income stream during retirement. Among the various types of annuities, fixed and indexed annuities are particularly popular for their potential to offer predictable earnings and protection against market downturns. Here's a closer look at both types of annuities, including how they work and their potential benefits and drawbacks.
Annuities
When planning for retirement, the key goals typically involve ensuring financial stability, experiencing life fully, and preserving and growing assets. Most people aim to balance their financial resources to ensure their money lasts throughout their retirement, while also enjoying their favorite pastimes and new adventures.
