Annuities are a popular investment option that can provide a steady stream of income in exchange for a lump sum of money. They are often used as a retirement planning tool, offering a way to supplement other sources of retirement income, such as Social Security or pensions. Work with Kevin Brewer & Associates today to learn more about annuities.  

What Is an Annuity? 
An annuity is an investment product that provides a regular income stream in exchange for a lump sum. Insurance companies typically sell annuities, and they are often used as retirement planning tools. The idea behind an annuity is that you make a large initial investment, and then the annuity provider makes regular payments to you over a set period. 

How Do Annuities Work? 
Annuities allow you to invest a lump sum with an insurance company. The insurance company will then invest your money in various assets, such as stocks, bonds and real estate. The returns on these investments provide you with a regular stream of income, which can be paid out monthly, quarterly, annually, or in a lump sum. 

Types of Annuities 
There are several types of annuities, each with its own unique features and benefits. Here are some of the most common types: 

• Fixed annuities—Fixed annuities offer a guaranteed rate of return for a set period. The rate of return is determined at the time of purchase and does not change over the life of the annuity.
• Variable annuities—Variable annuities allow you to invest in different investment options, such as stocks, bonds and mutual funds. The returns on these investments can vary, depending on market conditions.
• Indexed annuities—Indexed annuities are tied to a specific market index, such as the S&P 500. The returns on these annuities are based on the performance of the underlying index.
• Immediate annuities—Immediate annuities begin paying out immediately after you make your initial investment. The payments can be fixed or variable, depending on the type of annuity you choose.
• Deferred annuities—Deferred annuities allow you to make an initial investment and then delay the start of your regular payments. This can be helpful if you are planning for retirement but are still several years away. 

Please note that this page is not intended as financial advice, and you should consult a financial advisor at Kevin Brewer & Associates for guidance on picking the right annuity for you.  

How to Get an Annuity 
An annuity can be a valuable tool for retirement planning, but it‘s essential to understand the different types of annuities and how they work before investing. Fixed, variable, indexed, immediate and deferred annuities all have unique features and benefits, and the right choice will depend on your individual needs and goals. Speak with a financial advisor at Kevin Brewer & Associates to determine if an annuity is right for you.