Annuity Definition:  In the U.S. an annuity contract is created when an insured party, usually an individual, gives a life insurance company money that will later be distributed back to the insured party over time. Annuity contracts traditionally provide a guaranteed distribution of income over time, until the death of the person or persons named in the contract or until a final date, whichever comes first.

Warning: The majority of modern annuity customers use annuities only to accumulate funds free of income and capital gains taxes and to later take lump-sum withdrawals without using the guaranteed-income-for-life feature.  We think this can be a costly mistake for most people.  This site will try to offer the pros and cons of annuities plus educate you what they are all about.

Remember, most annuities are SOLD and usually have high commissions for the sales person.  Make sure you ask to get IN WRITING from the salesperson a full ist of all fees they will be paid if you buy an annuity.  Make sure they give it as a percentage.

Articles:

• Good Alternative Investments
  
• Variable Annuities - Pros and Cons of a Variable Annuity
• Variable annuity Costs
• Beware of Annuities
• Retirement Annuities
• Tax-Deferred Annuities,
• Advantages of variable annuities,
• Disadvantages of Variable Annuities